Administrators from EY have been appointed at butcher and food retailer Crawshaw Group, leading to the closure of its distribution centre in Astley along with 35 stores, as well as the loss of 354 jobs.
The group, headquartered in Yorkshire, has five stores in the North West – outlet-style offerings in Liverpool and Wigan; as well as sites at Stockport’s Mersey Square, the Manchester Arndale, and in Salford Shopping City.
It also operated a distribution centre off the A580 in Astley, pictured above.
Administrators have now been called in at five of the group’s businesses: Crawshaw Group; Crawshaw Butchers; Gabbotts Farm; Gabbotts Farm Retail; and East Yorkshire Beef.
Following the appointment of administrators, 19 stores will continue to trade while its distribution centre in Yorkshire will still be operational, with 261 staff kept on. However, 354 staff across the group have been made redundant.
The business’ assets have been put up for sale by administrators EY, which said discussions with interested parties had already begun with a view to a sale being completed “over the coming weeks”.
The group signalled its intention to appoint administrators last week, stating that it did not have “sufficient cash resources to effect the required restructuring of the business”.
In its most recent results, covering the 26 weeks to 29 July 2018, the group reported a pre-tax loss of £1.7m, while group revenue fell by 1.9% and cash declined to £3.3m, down from £4.7m in the same period a year earlier.
A new chief executive and chief financial officers were appointed to help turn around the business in the summer, and identified the company as having too many high street stores, with an initial focus on building the group’s factory outlets, which were seen as core to the company’s growth.