The June Quarter day has claimed its first victim in the retail market with the health food store chain, Julian Graves, going into administration. The retailer employs 755 people and operates 189 shops. NBTY Europe owns Julian Graves and reported that the store had lost £2m every year since they bought it in 2008. NBTY Europe also owns Holland and Barratt (H&B) which ironically is making good profits. Last year its profits jumped from £47.5m to £57m.
So what went wrong at Julian Graves?
The administrators at Deloitte said that low consumer spending and high nut prices were mainly to blame for the firms difficulties which would have affected H&B as well. Julian Graves was bought out of administration back in 2008 so perhaps there were issues with the business that were not fully addressed. In the end a business needs to change significantly to survive.
The administrators are looking for a buyer for the business.
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