Entrepreneur 'devastated' over sudden collapse of Burdall companies

Lawrence Wosskow said he was "totally and utterly" shocked when it emerged his Out of Town food retail chain was mired in debt and would have to fold with the loss of 350 jobs, including 100 at outlets at the Meadowhall shopping centre.

Mr Wosskow, who owned the company, had passed it into the hands of James Burdall to run but Mr Burdall is now at the centre of a police investigation into the alleged removal of hundreds of thousands of pounds from the business.

Mr Burdall, who was arrested and bailed last Friday, had been friends with Mr Wosskow, the former co-owner of the Little Chef chain of restaurants, since 1994. After Mr Wosskow suffered a major heart attack, he emigrated to the US and in 2007 passed control of his businesses, which also included Bradwells Ice Cream, in the Peak District, to Mr Burdall. Police are also investigating the alleged removal of hundreds of thousands of pounds from Bradwells but Mr Wosskow has promised to provide funding – in the region of 500,000 – to ensure the company survives.

He said: "He was one of my best friends and I asked him to oversee everything for me.

"I trusted him completely. I know a lot of those people who've lost their jobs and I'm absolutely gutted for them. I've had a lot of messages and they are obviously heartbroken about what's happened. They've got bills to pay, mortgages to pay, kids to feed. It's tragic, there's no two ways about it."

Mr Wosskow said he did not know the exact figure of his losses yet but expected them to be in the region of 2m.

Mr Burdall, from Fulwood, Sheffield, could not be contacted for comment.