A chain of UK butchers has collapsed into administration after running out of cash, putting hundreds of jobs at risk.
Crawshaw Group, which was listed on the London Stock Exchange’s junior market, had been trying to find extra funding that it needed to address “key issues it had identified with the company”.
In a statement to the stock market on Wednesday, Crawshaw said: “The board has been in discussions with existing investors and prospective investors.
“Unfortunately these discussions have not been successful in raising sufficient capital to address those key issues.”
The company said it “does not have sufficient cash resources to effect the required restructuring of the business”, and as such plans to appoint administrators to try and find a buyer for the group.
The company’s 54 stores are now at risk of closure, putting the jobs of Crawshaw’s 600 employees in question.
Shares in Crawshaw were suspended from trading on Wednesday.
Martin Lane, Managing Editor of money.co.uk, said: “All 600 employees of Crawshaw are in for an anxious period as they wait to learn if they'll suffer the same fate as other high street retailers this year. With the rise of competition from budget super markets 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.
"Unfortunately Crawshaw is just one in a long list of high street retailers who are struggling. Anyone who works in the industry who may be worried about the future of their jobs should hope for the best but prepare for the worst."
The butcher group is the latest in a long list of UK firms to fall into administration, and comes just 24 hours after Evans Cycles was bought by Sports Direct as part of a pre-pack administration.
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