As many as 240 jobs at meat retailer Crawshaw have been saved following a £1.4m deal which will see its last 19 stores sold to butchery chain Tom Cribbin for £1.4m.
Last month, Crawshaw announced it has entered administration, putting 600 jobs at risk across its 42 stores. A Crawshaw spokesperson told Retail Sector at the time that its financial woes were down to “increasing competitor pressures on the high street” namely “discount activity from the likes of Aldi and Lidl”.
Crawshaw closed 35 stores and one distribution centre in November, resulting in 350 jobs facing the axe. The company’s administration came after many years of financial losses, with its latest set of financial results for the six months to 29 July, Crawshaw posted revenue of £21.6m and a pre-tax loss of £1.7m.
The group’s only remaining assets are a long leasehold property in Grimsby, short leasehold interests in closed stores, surplus store equipment and a number of vehicles. A Crawshaw spokesperson told Retail Sector: “The joint administrators are continuing to market the sale of certain closed stores and related assets as well as recovering outstanding debtors.”
Administrators EY are to decide how the proceeds of the sale are to be shared between creditors. Shares in the meat retailer will remain suspended with its stock set to be cancelled following the deal.
Charles King, joint administrator from EY said: “This sale represents the best outcome for creditors, employees and shareholders of the Group. The team were able to stabilise the business in order for a sale to occur and we received substantial interest from over 50 interested parties.
“I am pleased that this sale secures 240 jobs. I would like to thank all those involved with the sale and wish Tom Cribbin every success with the business.”
Tom Cribbin, majority owner of Loughanure (operators of the Tom Cribbin chain), added: “I am looking forward to working with the staff and supporting them in delivering quality products, great service and fantastic value for money to all our customers.
“I would also like to take this opportunity to sincerely thank all the staff and customers for their loyal support to the business.”