The Aim-listed company, founded in 1954, has 54 stores across the Midlands and north of England, and has previously indicated it faced a number of challenges including rising business rates, fewer shoppers on the high street, and competition from supermarket discounters such as Aldi and Lidl.

In the six months to July 29, the company posted pre-tax loss of £1.7m, compared to a loss of £1.2m last year. Revenue fell 1.9% to £21.6m from £22.1m.

In a regulatory announcement Crawshaw Group said: ‘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.

‘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. In the light of the above and the operational and financial uncertainty which the company now faces, in order to protect both shareholders and creditors, the board has taken the decision to place the company into administration and intends to appoint administrators shortly with the purpose of seeking buyers for the Group’s business and assets on a going concern basis.’

Crawshaw has requested a suspension of trading in its shares on AIM with effect from 7.30am on 31 October 2018.

Report by Pat Sweet