A well-known York business that went into liquidation has been saved and is now trading under new owners.
Rafi’s Spicebox is still operating from its Goodramgate shop following a restructuring deal designed to secure its long-term future.
The original owners appointed insolvency practitioners from BTG Begbies Traynor on 29 June to oversee a company voluntary liquidation.
A statement of affairs published by BTG on Saturday (22 August) showed Rafi’s Spicebox Limited owed £523,442 to 13 creditors.
This included £77K to credit company Capital On Tap and £238K to business loans firm Iwoca Ltd.
But all local suppliers were paid up to date.
BTG said that, after exploring options to rescue the business, directors were left with little alternative to a pre-pack deal to rescue the majority of jobs of its employees and its business.
There is no change for customers, with the Rafi’s Spicebox name, products, online shop, recipes and trademarks continuing as before.
The York operation, including the Goodramgate shop, head office and warehouse at Ebor Industrial Estate, is unaffected and is now operating under the new company.
The restructuring safeguards 27 jobs across the group. However, there have been 11 redundancies across the wider business, including three in York.
This move follows sustained pressure from rising costs, including energy, ingredients, packaging and freight, alongside changes in consumer spending, BTG says.
Borrowing taken on to support growth also increased pressure on cashflow as the cost of servicing loans rose.
Mike Jenkins, partner at BTG, said: “The directors have taken the very difficult decision to restructure the business and close some sites.
“Ultimately, this was the best course of action to ensure the business could continue and the majority of employees keep their jobs, and its suppliers do not lose out.
“Rafi’s has built up a very loyal customer base, a strong reputation over many years and a reputation as a family-oriented business.
“This restructuring means it continues to be the same Rafi’s Spicebox that customers know. The focus now is on running a sustainable business and building stability into those foundations.”
Director at Rafi’s Spicebox Kevin Fernandezsaid: “This has been a difficult period for the business, but we are very positive about the future and have taken decisive action to put Rafi’s on a more stable footing.
“Our York shop is open as usual, and customers will continue to get exactly the same Rafi’s products, service and online offering. We are incredibly grateful to our customers, staff and suppliers for their loyalty and support.
“Rafi’s has been part of our family for more than 35 years and we are determined to protect that legacy and focus on building a sustainable business for the future.
“Our local suppliers have been incredibly supportive and loyal and have all come with us into the new company.
“The restructuring has not left our local suppliers with unpaid debts, and we are very grateful for their support. Our priority is to run the business well, focus on what Rafi’s does best and make sure we have a strong and sustainable business for the future.”
Rafi’s Spicebox was founded by Kevin’s late mother, Rafi Fernandez, in Sudbury, Suffolk, in 1989.
She remained involved when the York shop opened in 2004 and her legacy continues through the family business.
Following the restructuring, Rafi’s Spicebox has two shops, in York and Sudbury, as well as six concessions in Booths stores and in Fenwick’s Newcastle food hall.