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| Grocer Booths forced to call in accountants for financial health check | Grocer Booths forced to call in accountants for financial health check |
| (6 months later) | |
| Grant Thornton to advise upmarket family-run grocer on best way forward after tricky 18 months including £6.3m annual loss | |
| Rupert Steiner | |
| Mon 31 Jul 2017 19.33 BST | |
| Last modified on Sat 2 Dec 2017 17.51 GMT | |
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| Booths, the family-owned upmarket grocer, has been forced to call in accountants to conduct a financial health check of the business after a difficult 18 months. | Booths, the family-owned upmarket grocer, has been forced to call in accountants to conduct a financial health check of the business after a difficult 18 months. |
| Royal Bank of Scotland and HSBC have drafted in Grant Thornton to conduct an independent bank review of the business, which operates 28 stores across the north of England. | Royal Bank of Scotland and HSBC have drafted in Grant Thornton to conduct an independent bank review of the business, which operates 28 stores across the north of England. |
| Booths was badly affected by Storm Desmond, which caused damage to several of its stores in the north-west of England in December 2015. It made an annual loss in the 12 months to the end of March 2016, the latest annual results available. | Booths was badly affected by Storm Desmond, which caused damage to several of its stores in the north-west of England in December 2015. It made an annual loss in the 12 months to the end of March 2016, the latest annual results available. |
| Grant Thornton is expected to provide guidance for the best way forward. This could involve the founding Booth family pitching in with extra funds to support the business. | Grant Thornton is expected to provide guidance for the best way forward. This could involve the founding Booth family pitching in with extra funds to support the business. |
| “The family are on top of this. It is its first financial trouble in 170 years and mostly due to the terrible floods and the volatile retail climate,” one source said. | “The family are on top of this. It is its first financial trouble in 170 years and mostly due to the terrible floods and the volatile retail climate,” one source said. |
| The firm has also come under attack from discounters Aldi and Lidl, like other established supermarkets, and faces fierce competition from bigger rivals and online players. | The firm has also come under attack from discounters Aldi and Lidl, like other established supermarkets, and faces fierce competition from bigger rivals and online players. |
| Edwin Booth, the retailer’s executive chairman and chief executive, said: “These are turbulent times for the retail industry, which is rife with conjecture and speculation. | Edwin Booth, the retailer’s executive chairman and chief executive, said: “These are turbulent times for the retail industry, which is rife with conjecture and speculation. |
| “We have an effective plan and team in place to ensure Booths remains a much loved retailer for our customers here in the north. Booths is a resilient 170-year, family-owned retailer with strong brand loyalty and leadership in place. | “We have an effective plan and team in place to ensure Booths remains a much loved retailer for our customers here in the north. Booths is a resilient 170-year, family-owned retailer with strong brand loyalty and leadership in place. |
| “We’re focusing on delivering the best service, products and value to our customers.” | “We’re focusing on delivering the best service, products and value to our customers.” |
| The firm took action last year. It removed a layer of senior management which led to the loss of 100 jobs and a one-off charge of £1.6m. This caused the business to fall to a £6.3m loss in 2016, down from a £1.1m profit the previous year. | The firm took action last year. It removed a layer of senior management which led to the loss of 100 jobs and a one-off charge of £1.6m. This caused the business to fall to a £6.3m loss in 2016, down from a £1.1m profit the previous year. |
| Former chief executive Chris Dee left the business after 22-years, and was replaced by Booth. The family control 96% of the grocer with staff owning the remainder. | Former chief executive Chris Dee left the business after 22-years, and was replaced by Booth. The family control 96% of the grocer with staff owning the remainder. |
| The firm has also invested in growing the business by opening five new stores over an 18 month period. This has created 400 new roles. | The firm has also invested in growing the business by opening five new stores over an 18 month period. This has created 400 new roles. |
| Booths has always sought to set itself apart from rivals by supporting farmers by paying a premium for local produce. | Booths has always sought to set itself apart from rivals by supporting farmers by paying a premium for local produce. |
| Five generations of the Booths family have led the grocer in its 170-year history. The firm can trace its history back to 1847, when 19-year-old tea dealer Edwin Henry Booth opened his first shop in Blackpool. | Five generations of the Booths family have led the grocer in its 170-year history. The firm can trace its history back to 1847, when 19-year-old tea dealer Edwin Henry Booth opened his first shop in Blackpool. |
| Booth borrowed £80 to set up the Blackpool store and managed to pay it back within three months having made a £50 profit. His aim was to sell the best goods he could buy in shops staffed with top-class assistants. | Booth borrowed £80 to set up the Blackpool store and managed to pay it back within three months having made a £50 profit. His aim was to sell the best goods he could buy in shops staffed with top-class assistants. |
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