Struggling food-to-go retailer and butcher Crawshaws intended to develop its franchise model before going into administration, new documents have revealed.
The Rotherham-based chain closed 35 of its 54 stores across the north and in the midlands after going into administration in October. At the time, Crawshaws were also supplying meat to three Spar stores in Sheffield and Doncaster through concessions.
Although the existing franchises have not been affected by the administration, newly filed documents by administrator Ernst & Young revealed plans to develop the model further.
A statement in one of the documents said: “The intended result of the company voluntary arrangement (CVA) was to establish a profitable business based on the remaining stores and
its three franchise stores, with a future growth strategy that was focused around developing the franchise model.
“However, the group had insufficient funds to meet the costs of the CVA and continue to trade with adequate working capital.”
The documents show Crawshaws incurred £15.9m of losses in the two and a half years ending 29 July 2018. Bestway Wholesale is owed £1,343 by the company.
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