5th Nov 2018 10:12
LONDON (Alliance News) - Crawshaw Group PLC said Monday buyers for the value butcher were being sought after it appointed administrators, closed stores and cut staff numbers.
Last Wednesday, Crawshaw announced it was looking to enter administration after "several years of financial losses and the unsuccessful attempt to raise the additional investment required to fund a restructuring plan."
On Monday, it confirmed Robert Kelly and Charles King from Ernst & Young LLP had been appointed joint administrators on Friday.
After reviewing its financial position, Crawshaw has closed 35 stores and one of its distribution centres and made 354 staff redundant.
Crawshaw continues to trade from 19 stores and a distribution centre and employ 261 staff. It also continues to operate three trial butcher counters in Spar stores as well as its wholesale operations.
The administrators have also offered the firm up for sale and have "entered into discussions" with interested parties. It is hoped a sale will be secured within "coming weeks."
Crawshaw also announced Non-Executive Director Stephen Henderson would retire from the board with immediate effect. Crawshaw Chairman Jim McCarthy thanked Henderson for his "support to Crawshaw since his appointment last year" and wished him well for his "future endeavours."
The firm also added its nominated adviser Peel Hunt LLP had served its 30-day notice to end its role as nomad and broker for Crawshaw. In light of its "financial status, Crawshaw does not expect to appoint a replacement nomad.
Shares in Crawshaw remain suspended on AIM.