Not-for-profit Locavore CIC enters administration as expansion plans unravel

Not-for-profit Locavore CIC enters administration as expansion plans unravel

Blair Nimmo and Geoff Jacobs

Glasgow-based Locavore Community Interest Company has entered administration on 30 January 2024, with Blair Nimmo and Geoff Jacobs of Interpath Advisory appointed as joint administrators.

Founded in 2011 and based in Glasgow, Locavore is a not-for-profit social enterprise which seeks to build a more sustainable local food system which benefits its local economies, the environment and its communities.

The company operated four zero-waste organic supermarkets in Govanhill, Partick, Kirkintilloch and Edinburgh, as well as an online vegetable box delivery service. In addition, the Company is a wholesaler of organic dry goods and fresh produce, including its own-grown produce from three locations near Glasgow and Linlithgow.

Following its expansion into new stores and a larger warehouse facility over 2021 and 2022 which incurred significant set up costs, the company was also adversely impacted by rising costs, including the cost of energy and food prices.

With footfall across its stores also lower than anticipated, cashflow pressures began to increase. The directors took steps to reduce costs across the business as far as possible; however, with pressure on liquidity continuing to mount, the directors concluded they had no option but to place the company into administration.

Prior to the appointment of the joint administrators, we are advised that a transaction took place which saw The Chard Holding Group CIC acquire the stores in Govanhill and Partick, as well as the vegetable box business and the Locavore brand. It is understood 77 members of staff transferred to the purchaser as part of that transaction.

The Edinburgh store closed earlier in January 2024.

Upon their appointment, the joint administrators closed the remaining store in Kirkintilloch, which regrettably resulted in five redundancies, with one other employee also made redundant.

Mr Nimmo, chief executive of Interpath Advisory and joint administrator, said: “Locavore is an award-winning social enterprise that, over the course of the past decade, has been a vocal campaigner for more sustainable, locally-based food systems.

“It is unfortunate that its plans for expansion resulted in significant debt which, together with cost inflation across the food and grocery sector, necessitated an administration appointment.”

Mr Jacobs, managing director at Interpath Advisory and joint administrator, added: “It is disappointing that, despite the investment made, this not-for-profit enterprise has not been able to make its expansion plans come to fruition.

“We will be providing support to those members of staff who have been made redundant, as well as seeking buyers for the remaining assets.”

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