Crawshaw enters administration after failed talks with investors

AIM-listed butcher Crawshaw Group said on Wednesday that it has decided to place the company into administration as discussions with existing and prospective investors have proved unsuccessful.

The group, which announced last week that it was considering a number of remedial actions including an equity capital raising, said it no longer has 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."

Crawshaw's shares have now been suspended from trading on AIM at the company's request.

Last month, the group reported a 1.9% drop in interim revenue as its pre-tax loss widened to £1.7m from £1.2m in the first half of last year. Like-for-like sales in the period were down 13.2% and customer numbers declined 9.1%.

Chief executive officer Jim Viggars said at the time that the results were disappointing but not entirely surprising given market conditions and the issues facing a retail estate that has too many high street stores and not enough factory stores.