BUTCHERS Crawshaws - which has stores in Blackburn and Burnley - is to call in administrators after failing to raise emergency funding to stay afloat, putting 600 jobs at risk.

The group, which operates from 42 high street stores and 12 factory outlets, said discussions with investors to raise cash had failed and that it does not have sufficient resources to carry out a restructuring.

The Burnley store opened in July 2016 becoming the second outlet in East Lancs.

It followed the launch of the £250,000 store in Railway Road, Blackburn in February 2016.

As a result, Crawshaw’s board has taken the decision to appoint administrators with the purpose of seeking buyers for the group’s business and assets on a going concern basis.

Crawshaw’s shares were also suspended from trading on the London Stock Exchange’s junior AIM market.

The move threatens 600 jobs.

One member of staff from the Blackburn store said: "We found out from seeing it on the news this morning.

"We don't know what is going on, we've not been told anything yet."

It comes after the butcher said earlier this month that it was attempting to raise equity to restore growth and profitability.

Lancashire Telegraph:

According to its latest set of results for the six months to July 29, the group posted revenue of £21.6 million and a pre-tax loss of £1.7 million.

Blackburn town centre shopper John Bates said: "I did not go in much really, but if it does go I will feel sad for the staff that work there.

"I thought it was in a good spot for trade through, its in the middle of the bus and train station."

Shopper Lynn Morris, from Blackburn, said: "I went in every now and then for hot food.

"It's only been open a couple of years and it always seemed busy at lunch time."

Another shopper said: "Its another town centre business that might be closing down.

"Because a lot of people who get off from the bus station and go straight into The Mall, there's less footfall walking past Railway Road.

"If the shop does go I will feel sorry for the staff who work there."

Food mogul Ranjit Boparan holds a near 30 per cent stake in the business and his 2 Sisters Food Group also supplies Crawshaw.

The “chicken king” – so-called because of 2 Sisters’ large-scale involvement in the poultry trade – is also an adviser to the board.

Crawshaw said: “As previously announced on 26 October 2018, the board was considering a number of remedial actions including raising additional funding through an equity capital raising in order to address the key issues it had identified with the company.

“Since then, 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 does not have sufficient cash resources to effect the required restructuring of the business.”