Locavore said it has saved 77 jobs and two stores despite the concerns.
A Glasgow-based community interest company which runs a number of supermarkets has announced it has transferred many of its assets to a new social enterprise amid financial pressures.
Locavore, which operates local organic grocery stores and vegetable box deliveries across the central belt have appointed joint administrators Blair Nimmo and Geoff Jacobs from Interpath Advisory.
The group’s directors confirmed on social media that they had “found a way to safeguard” much of Locavore’s activities including the Partick and Govanhill shops, veg boxes, and local food growing.
These parts of the business were acquired by a new social enterprise - The Chard Holding Group - set up by Locavore’s founder, reportedly securing 77 jobs.
The remainder of the company has been put into administration, leading to the closure of its Kirkintilloch store.
Locavore’s Edinburgh branch had also recently closed, with the Garnethill branch closing in 2022.
In 2022 Locavore launched a crowdfunder to secure its future, looking to raise £50,000 as it deals with financial losses.
The group was set up in 2011 to help build a more sustainable local food system which is better for the economy, the environment and our communities.
In a statement posted on social media, the CIC’s directors wrote: “If you’ve been following us over the last few years you’ll know that we have been struggling through financial difficulties following an ambitious and ill timed expansion which saw us scale up; opening new shops and a central distribution hub.
“A year back loads of you supported our crowdfunder which bought us time to try to turn things around. We knew it was an extremely challenging task but gave it our best to stop losses, reduce costs, and make the enterprise profitable. Our team worked incredibly hard and managed to grow custom while savings were made. That brought Locavore to a point where it was breaking even month to month.
“Unfortunately this has just come too late. The debt we built up while trading at a loss is beyond what we can repay, and we’re shackled into leases we can’t afford, or exit. There’s now no route through the situation for Locavore CIC.
“After 13 years of developing a social enterprise that helps build the sustainable, local food networks that we need, it is has been tough to give up; and we’ve not.
“We’re really sorry we couldn’t make these locations work and want to apologise to the team and supporters for not being able to secure a future for these shops. We’ll support the team members impacted by these changes to ensure they receive everything they are due.
“Thank you to everyone who has supported Locavore, and our wider mission to build the sustainable local food networks that are required now and into the future. We hope you'll continue backing the new incarnation by using the Govanhill & Partick shops, or getting a veg box.”