Crawshaws goes into administration

Crawshaws on Yorkshire Street

Meat retailer Crawshaws, which has a store on Yorkshire Street, entered administration on Wednesday 31 October.

The company said it did not have ‘sufficient cash resources’ to carry out a restructure, as over 40 UK stores are at risk of closure.

Earlier this month, Crawshaws said it was attempting to raise additional funding through equity.

A statement released on the retailer’s website stated: “As previously announced on 26 October 2018, the Board was considering a number of remedial actions including raising additional funding through an equity capital raising in order to address the key issues it had identified with the Company.

“Since then, the Board has been in discussions with existing investors and prospective investors. Unfortunately, these discussions have not been successful in raising sufficient capital to address those key issues.

“The Company does not have to affect the required restructuring of the business. In the light of the above and the operational and financial uncertainty which the Company now faces, in order to protect both shareholders and creditors, the Board has taken the decision to place the Company into administration and intends to appoint administrators shortly with the purpose of seeking buyers for the Group’s business and assets on a going concern basis.”

Crawshaw Group plc shares have been suspended from trading on the London Stock Exchange’s AIM market as of 7.30am on 31 October.