175 jobs lost as McLeish Brothers deli chain into administration

Published on Monday 12 January 2009 17:13

A DELICATESSEN chain has gone into administration with the loss of 175 jobs.

McLeish Brothers, which has 10 stores in Scotland including branches in Lochrin Square and South Bridge in Edinburgh, employs 205 full and part-time staff.

It is the latest retailer to be hit by a fall in consumer spending, announcing that seven stores - including the two Edinburgh branches - will be closed and 175 people made redundant with immediate effect.

Aberdeen-based administrator Tenon Recovery is planning to keep the business trading while seeking a buyer.

The company originated more than 60 years ago when the McLeish family started a butcher and grocery business in Dundee, where the company headquarters remain.

It was bought by new owners in 2007 and rebranded as McLeish Brothers, a chain of delis selling quality food sourced in Scotland.

Iain Fraser, of Tenon Recovery, said: "We think the business could appeal to an existing retail entrepreneur or national chain that wants to acquire a strong brand and access to a valuable network of Scottish food suppliers established by the company.

"However, in order to allow the company to continue trading we need to quickly cut costs and will be closing seven stores and making 175 jobs redundant with immediate effect.

"Our focus is now on marketing the business for sale as a going concern, and we would urge interested parties to contact us as quickly as possible."

The three remaining stores are Inverurie, Schoolhill in Aberdeen and Whitehall in Dundee.