Locavore Community Interest Company (SC412721): administration
- Status
- Administration ended
- Administration began
- 2024-01-30
- Administrators
- Alistair Mcalinden, Geoffrey Isaac Jacobs
- Administrators' firm
- Interpath Advisory
- Incorporated
- 2011-12-07
- Location
- Glasgow
- Industry
- 01130 Growing of vegetables and melons, roots and tubers
Why it went into administration
- Cash flow / liquidity pressure
- Weak consumer demand
- Rising costs / inflation
- Energy costs
- Over-expansion / investment not recovered
- Sustained trading losses
From the administrators' statement
In 2020, the Company embarked upon a growth plan aimed at expanding its operations by increasing the number of retail units and establishing a central distribution hub at Southpoint, 15 Lawmoor Rd, Glasgow, G5 OUG. This resulted in a 34% growth in annual sales between 2020 and 2022 to a peak turnover of £4.6m (excluding VAT) in year ended 31 March 2022. However, the growth in turnover was not sufficient to fund the additional cost footprint from the new store openings and transition to the new distribution
centre. Whilst loan, grant and hire purchase funding was obtained to assist in funding the capital expenditure and expansion plans, trading losses arose which in turn led to cash flow pressures and mounting creditor arrears.
Financial pressures were exacerbated by increasing costs including energy costs and the cost of living crisis encountered over 2022 and 2023.
Administrators' statement of proposals (2024-03-22) · Companies House register