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You can find the current article at its original source at https://www.theguardian.com/business/2018/oct/31/crawshaw-chain-of-butchers-falls-into-administration
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| Crawshaw chain of butchers is put into administration | Crawshaw chain of butchers is put into administration |
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| Up to 800 retail jobs are at risk as butchery chain Crawshaw Group collapses into administration and Mothercare cuts head office job amid tough times on the UK high street. | Up to 800 retail jobs are at risk as butchery chain Crawshaw Group collapses into administration and Mothercare cuts head office job amid tough times on the UK high street. |
| Up to 54 stores employing 600 people could close if a buyer for Crawshaw Group cannot be found. | Up to 54 stores employing 600 people could close if a buyer for Crawshaw Group cannot be found. |
| The Yorkshire-based company, which was founded in 1954, expected to appoint administrators on Wednesday who will try to find buyers for the business and its assets. | The Yorkshire-based company, which was founded in 1954, expected to appoint administrators on Wednesday who will try to find buyers for the business and its assets. |
| Crawshaw has 42 high street shops and 12 factory outlets across the Midlands and north of England. It has been talking to investors for the past month but has failed to raise the funds it needed to survive in its current form. | Crawshaw has 42 high street shops and 12 factory outlets across the Midlands and north of England. It has been talking to investors for the past month but has failed to raise the funds it needed to survive in its current form. |
| Ranjit Singh Boparan, the entrepreneur known as the “chicken king”, is the biggest shareholder with a 29.7% stake in the business and is an adviser to the board. His 2 Sisters Food Group also supplies Crawshaw. | Ranjit Singh Boparan, the entrepreneur known as the “chicken king”, is the biggest shareholder with a 29.7% stake in the business and is an adviser to the board. His 2 Sisters Food Group also supplies Crawshaw. |
| The butchery chain’s problems come as Mothercare consults about redundancy with 200 people at its head office as it cuts costs and adapts after winning approval from creditors to close up to 60 of its 137 stores. About a third of those stores have already closed with the rest expected to do so in the new year. | The butchery chain’s problems come as Mothercare consults about redundancy with 200 people at its head office as it cuts costs and adapts after winning approval from creditors to close up to 60 of its 137 stores. About a third of those stores have already closed with the rest expected to do so in the new year. |
| All the head office staff are involved in business-wide operations such as buying and marketing, | All the head office staff are involved in business-wide operations such as buying and marketing, |
| The company said 50 roles were being created and it is hoped some of those involved in the consultation will be able to move post. | The company said 50 roles were being created and it is hoped some of those involved in the consultation will be able to move post. |
| A spokesperson for the company said the move was part of its effort to create a sustainable, global brand with an “efficient and effective central business services from our head office”. | A spokesperson for the company said the move was part of its effort to create a sustainable, global brand with an “efficient and effective central business services from our head office”. |
| It said the UK retail chain would operate in a similar way to its international franchise businesses with “autonomy to focus its offer on an in-depth specialist knowledge of its domestic market”. | It said the UK retail chain would operate in a similar way to its international franchise businesses with “autonomy to focus its offer on an in-depth specialist knowledge of its domestic market”. |
| Like other high street retailers, Crawshaw and Mothercare have been hit by rising rents, higher business rates and fragile consumer confidence in the run-up to Brexit. | Like other high street retailers, Crawshaw and Mothercare have been hit by rising rents, higher business rates and fragile consumer confidence in the run-up to Brexit. |
| Crawshaw has also faced increased competition from Aldi and Lidl, which are putting pressure on the big four supermarkets – Tesco, Sainsbury’s, Asda and Morrisons – to cut prices. | Crawshaw has also faced increased competition from Aldi and Lidl, which are putting pressure on the big four supermarkets – Tesco, Sainsbury’s, Asda and Morrisons – to cut prices. |
| Mothercare is also under pressure from the supermarkets as well as online specialists including Amazon and high street retailers from Next to Primark. | Mothercare is also under pressure from the supermarkets as well as online specialists including Amazon and high street retailers from Next to Primark. |
| Gourmet Burger Kitchen: The upmarket burger chain wants to close 17 of its 85 restaurants via an insolvency process known as a company voluntary arrangement (CVA) | |
| House of Fraser: The department store chain is expected to close about 12 stores after being bought out of administration by Mike Ashley. It had agreed a CVA under which 31 stores were to close, but this lapsed on administration. | House of Fraser: The department store chain is expected to close about 12 stores after being bought out of administration by Mike Ashley. It had agreed a CVA under which 31 stores were to close, but this lapsed on administration. |
| Homebase: The DIY chain is closing at least 42 stores after completing a CVA organised by new owner Hilco. The restructuring expert bought the DIY chain for £1 from Australia's Wesfarmers who botched an attempt to bring its Bunnings chain to the UK. | Homebase: The DIY chain is closing at least 42 stores after completing a CVA organised by new owner Hilco. The restructuring expert bought the DIY chain for £1 from Australia's Wesfarmers who botched an attempt to bring its Bunnings chain to the UK. |
| Poundworld: The discount retailer has closed all its 355 stores, with the loss of 5,100 jobs after falling into administration in June. | Poundworld: The discount retailer has closed all its 355 stores, with the loss of 5,100 jobs after falling into administration in June. |
| Cau: The owner of the Gaucho and Cau steakhouses fell into administration in July leading to the closure of all 22 Cau restaurants, with loss of 750 jobs. The groups lenders have since bought the 16 Gaucho outlets. | Cau: The owner of the Gaucho and Cau steakhouses fell into administration in July leading to the closure of all 22 Cau restaurants, with loss of 750 jobs. The groups lenders have since bought the 16 Gaucho outlets. |
| Mothercare: The chain is closing 60 of its 137 outlets after agreeing a CVA in May. Additional closures in July mean 900 jobs will be lost. | Mothercare: The chain is closing 60 of its 137 outlets after agreeing a CVA in May. Additional closures in July mean 900 jobs will be lost. |
| Carluccio's: The Italian chain secured a CVA to close 30 of its 99 restaurants in late May. | Carluccio's: The Italian chain secured a CVA to close 30 of its 99 restaurants in late May. |
| New Look: The chain is closing 85 stores in a restructuring plan announced earlier this year. Its chairman, Alistair McGeorge, said the future of a further 39 stores was in doubt as talks with landlords continued. | New Look: The chain is closing 85 stores in a restructuring plan announced earlier this year. Its chairman, Alistair McGeorge, said the future of a further 39 stores was in doubt as talks with landlords continued. |
| Carpetright: The retailer obtained a CVA in April to close 92 of its 409 UK stores in September with the loss of about 300 jobs. | Carpetright: The retailer obtained a CVA in April to close 92 of its 409 UK stores in September with the loss of about 300 jobs. |
| Prezzo: In March the Italian-themed restaurant group secured a CVA to close 94 of its 300 restaurants, with the loss of 500 jobs. Rent cuts were agreed on a further 57 locations. | Prezzo: In March the Italian-themed restaurant group secured a CVA to close 94 of its 300 restaurants, with the loss of 500 jobs. Rent cuts were agreed on a further 57 locations. |
| Jamie’s Italian: The chain closed six locations in 2017 and this year agreed a CVA to close about a third of its 35 loss-making outlets. | Jamie’s Italian: The chain closed six locations in 2017 and this year agreed a CVA to close about a third of its 35 loss-making outlets. |
| Byron: The upmarket burger chain is closing up to 20 of its 67 restaurants after a CVA agreed in January. | Byron: The upmarket burger chain is closing up to 20 of its 67 restaurants after a CVA agreed in January. |
| Debenhams: The under-pressure department store chain has said it could close up to 50 of its 165 stores stores and wants to get rid of space at 30 more by bringing in gyms and other services. | Debenhams: The under-pressure department store chain has said it could close up to 50 of its 165 stores stores and wants to get rid of space at 30 more by bringing in gyms and other services. |
| M&S: The high street stalwart wants to close 100 outlets – a third of its main stores by 2022 as part of a 'radical transformation' plan. | M&S: The high street stalwart wants to close 100 outlets – a third of its main stores by 2022 as part of a 'radical transformation' plan. |
| This week, statistics from the Insolvency Service, a government agency, showed the biggest rise in company insolvencies since the depths of the financial crisis. Analysts said the 19.3% year-on-year rise in the third quarter was linked to the struggles on the high street. | This week, statistics from the Insolvency Service, a government agency, showed the biggest rise in company insolvencies since the depths of the financial crisis. Analysts said the 19.3% year-on-year rise in the third quarter was linked to the struggles on the high street. |
| Crawshaw follows Evans Cycles, House of Fraser, Toys R Us and Maplin into administration while a string of other well-known high street names have closed dozens of stores via an insolvency process known as a company voluntary arrangement. | Crawshaw follows Evans Cycles, House of Fraser, Toys R Us and Maplin into administration while a string of other well-known high street names have closed dozens of stores via an insolvency process known as a company voluntary arrangement. |
| Martin Lane, the managing editor of money.co.uk, said: “With the rise of competition from budget supermarkets offering cheap meat options it’s hard for butchers to survive.“It is undoubtedly distressing news for employees of Crawshaw and their families especially because their fates are now being kept in limbo. Now is the time to check what redundancy rights you have and dig out any income or mortgage protection policies you hold just in case.” | Martin Lane, the managing editor of money.co.uk, said: “With the rise of competition from budget supermarkets offering cheap meat options it’s hard for butchers to survive.“It is undoubtedly distressing news for employees of Crawshaw and their families especially because their fates are now being kept in limbo. Now is the time to check what redundancy rights you have and dig out any income or mortgage protection policies you hold just in case.” |
| Half-year results released a month ago showed Crawshaw’s losses before tax widened to £1.7m in the six months to 29 July, from £1.2m, as like-for-like sales slumped 13% and customer numbers dropped 9.1%. In May, the firm appointed a new chief executive, Jim Viggars, and in July it appointed a new finance chief, Nick Taylor, to turn the business around. | Half-year results released a month ago showed Crawshaw’s losses before tax widened to £1.7m in the six months to 29 July, from £1.2m, as like-for-like sales slumped 13% and customer numbers dropped 9.1%. In May, the firm appointed a new chief executive, Jim Viggars, and in July it appointed a new finance chief, Nick Taylor, to turn the business around. |
| The new management team said the group had expanded too quickly, failed to deal with the decline in the high street stores’ performance and mishandled staffing. | The new management team said the group had expanded too quickly, failed to deal with the decline in the high street stores’ performance and mishandled staffing. |
| Shares in the Aim-listed company have been suspended. | Shares in the Aim-listed company have been suspended. |
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