Butcher’s chain becomes leaner
GABBOTTS Farm, the Wigan-based chain of butchers’ shops, look set to make a profit in 2010 for the first time in years, according to owner Tom Cribbin.
Newly-filed accounts for the year to December 31, 2009 reveal that the business narrowed pre-tax losses to £310,000 (2008: £1m loss) despite sales dropping 15% to £12.4m (£14.5m) as it closed more of its unprofitable stores.
Cribbin bought the chain from the estate of deceased founder Ted Porter two years ago. At the time, it operated from 14 outlets but Cribbin has since closed three of these and has been renegotiating leases or looking to re-site stores.
“The ones we have left are fairly stable,” he told TheBusinessDesk.com. “We’ve written off the goodwill and extricated ourselvs from some of the more difficult leases, and the company is on a sounder footing going forwards.”
A note in the accounts points out that the firm’s net liabilities widened to more than £770,000 by its year end and its accounts were only prepared on a going concern basis as a result of a written guarantee provided by Irish parent firm Cribbin Family Butchers. However, Cribbin said that this company had agreed a refinancing deal with its bankers in May.
“The banking sector in Ireland is all about trying to get in any money they’re owed as soon as possible,” he said.
He added that this made long-term decisions about expansion more difficult, paticularly as higher food prices has tied up more cash.
It has developed a model of around 1,000 sq ft – 600 sq ft of which is retail space – which has proved to be easier to handle than larger units.
“We can do the same turnover from a 1,000 sq ft unit, they’re less expensive to rent and they’re easier for staff to run and manage. We’re trying to be as lean as we can,” he said.
He also added that a rationalisation of its supply base had led to it ordering more fresh product from a smaller band of trusted local suppliers as opposed to buying on the open market.
“It’s given us more consistency in supply. It also means the product is fresh,” he said.
“Everyone is working to a budget. We’re happy now that we’re able to give good value and be able to make a profit.”
