McLeish Brothers, the upmarket chain of Scottish delis, has become the highest-profile independent victim of the downturn to date after going into administration this week.
Seven of the 10 stores have closed, with 175 of the 205 staff made redundant. Three stores are, however, being kept open as administrators Tenon Recovery look to sell the business as a going concern.
Tenon said it had received more than 20 enquiries for the business and that interest had come from a range of different players, from national chains to entrepreneurs.
In a statement, Tenon blamed the company’s failure on the credit crisis and a dramatic fall in consumer spending.
However, the main cause was the crunch, said sources close to the business, revealing it had experienced serious cash flow problems following the withdrawal of credit facilities by HBOS.
Former MD Stanley Morrice told The Grocer that the stores had been trading well. “Our footfall was good and sales were growing,” he said. “The problems came from an inability to acquire finance.”
Morrice said he was unable to comment further on what had gone wrong as although he was no longer still working for the company, he would remain a director until the business was sold.
“My first thoughts are for the staff and suppliers,” he added. “I still believe it is a really good business that someone could make a real success out of.”
Morrice, a former managing director of the Mace symbol group Aberness, led a takeover of the 60-year-old family-run McLeish business in 2007.
Seven of the 10 stores have closed, with 175 of the 205 staff made redundant. Three stores are, however, being kept open as administrators Tenon Recovery look to sell the business as a going concern.
Tenon said it had received more than 20 enquiries for the business and that interest had come from a range of different players, from national chains to entrepreneurs.
In a statement, Tenon blamed the company’s failure on the credit crisis and a dramatic fall in consumer spending.
However, the main cause was the crunch, said sources close to the business, revealing it had experienced serious cash flow problems following the withdrawal of credit facilities by HBOS.
Former MD Stanley Morrice told The Grocer that the stores had been trading well. “Our footfall was good and sales were growing,” he said. “The problems came from an inability to acquire finance.”
Morrice said he was unable to comment further on what had gone wrong as although he was no longer still working for the company, he would remain a director until the business was sold.
“My first thoughts are for the staff and suppliers,” he added. “I still believe it is a really good business that someone could make a real success out of.”
Morrice, a former managing director of the Mace symbol group Aberness, led a takeover of the 60-year-old family-run McLeish business in 2007.
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