Jobs and much-loved York family business saved by restructure and pre-pack sale
The business is popular for its spices. (Image: Pic supplied)
A much-loved York family business has been saved through a restructuring deal.
Rafi’s Spicebox, which is known for its spices and other Indian cooking ingredients, entered a Company Voluntary Liquidation (CVL) on June 29 and has since been acquired by a new company led by former director Kevin Fernandez.
The business, which operates from its long-standing Goodramgate shop in York, will now continue trading under new ownership.
Mike Jenkins, partner at BTG, said: "The directors have taken the very difficult decision to restructure the business and close some sites.
The shop in Goodramgate
(Image: Newsquest)
"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.
A pre-pack sale has saved York family firm Rafi's Spicebox
(Image: Pic supplied)
"The focus now is on running a sustainable business and building stability into those foundations."
The York shop, along with the company’s head office and warehouse at Ebor Industrial Estate, remains unaffected by the changes.
Customers will continue to have access to the same products, online store, and recipes.
The move has preserved 27 jobs, although 11 redundancies were made across the wider business, including three in York.
The company has worked closely with its network of local suppliers, many of whom continue to support the business.
Mr Fernandez, now director at Rafi’s Spicebox, said: "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 in 1989 by Mr Fernandez’s late mother, Rafi Fernandez, in Sudbury, Suffolk.
She remained involved with the business when the York shop opened in 2004.
Rising costs in energy, ingredients, packaging, and freight, combined with changing consumer spending and higher loan servicing costs, contributed to the financial pressures that led to the restructuring.
The business now operates two shops, in York and Sudbury, as well as concessions in Booths stores and Fenwick’s Newcastle food hall.