Meat retailer Crawshaw is to call in administrators after failing to raise emergency funding to stay afloat, putting 600 jobs at risk.
The group, which operates from 42 high street stores and 12 factory outlets, said discussions with investors to raise cash had failed and that it does not have sufficient resources to carry out a restructuring.
As a result, Crawshaw’s board has taken the decision to appoint administrators with the purpose of seeking buyers for the group’s business and assets on a going concern basis.
Crawshaw’s shares were also suspended from trading on the London Stock Exchange’s junior AIM market.
The move threatens 600 jobs.
It comes after the butcher said earlier this month that it was attempting to raise equity to restore growth and profitability.
According to its latest set of results for the six months to July 29, the group posted revenue of £21.6 million and a pre-tax loss of £1.7 million.
Food mogul Ranjit Boparan holds a near 30% stake in the business and his 2 Sisters Food Group also supplies Crawshaw.
The “chicken king” – so-called because of 2 Sisters’ large-scale involvement in the poultry trade – is also an adviser to the board.
Crawshaw said: “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 sufficient cash resources to effect the required restructuring of the business.”