UK meat retailer Crawshaw Group has opted to enter administration in a move to protect both shareholders and creditors after it failed to raise capital for business restructuring.
The company’s board has made this decision after discussions failed with existing and prospective investors.
On 26 October, the board announced that the company was exploring several remedial actions, including raising additional funding through an equity capital raising.
In a statement submitted to the London Stock Exchange, Crawshaw said: “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.
“In the light of the above and the operational and financial uncertainty which the company now faces, in order to protect both shareholders and creditors, the board has taken the decision to place the company into administration and intends to appoint administrators shortly with the purpose of seeking buyers for the Group’s business and assets on a going concern basis.”
In addition, the company has temporarily suspended its trading on AIM starting today.
Founded in 1954, Crawshaw operates 42 high street stores and 12 factory outlet stores across the Midlands and the north of England.
Earlier this month, the retailer announced that its nominated adviser and broker Peel Hunt has agreed to terminate its engagement.
Crawshaw has appointed WH Ireland as the joint broker with immediate effect.
The company reported £21.6m in group revenues for H1, a 1.9% decline compared to £22.1m for the same period last year.