Exclusive: Police inquiry after Yorkshire food retail chain collapses

POLICE have been called in after the sudden collapse of a Yorkshire-based food retail chain with the loss of 350 jobs.

The Out of Town Leisure Group, which owns a string of outlets in major shopping centres, including eight at Meadowhall, went into administration on Wednesday afternoon.

At the same time, a lawyer connected to the Sheffield-based firm contacted South Yorkshire Police with allegations of fraud.

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The Yorkshire Post understands the police investigation is focusing on the alleged movement of over 1m from Out of Town's accounts.

About 100 jobs have been lost at Meadowhall alone. Staff arrived for work yesterday morning to find their workplaces shuttered up with a brief note stating that "due to unforeseen circumstances" they were closed.

The company collapsed after its sole director – James Burdall – resigned last week, after which it could no longer continue to operate.

Mr Burdall, from Fulwood, Sheffield, was also sole director of seven other companies, largely subsidiaries of Out of Town, which have also gone into administration following his resignation.

He could not be contacted yesterday.

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The businesses are owned by former Sheffield entrepreneur Lawrence Wosskow, who handed to them on to Mr Burdall to run when he emigrated to the US three years ago.

Mr Wosskow, who formerly co-owned the Little Chef chain of restaurants, could not be

contacted yesterday, but it is understood that his role in the businesses is not under investigation.

He is providing financial support to at least one other business of which Mr Burdall remains a director to ensure its survival.

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Bradwells' Ice Cream, based in the Hope Valley in the Peak District, which Mr Wosskow also owns, said its future was safe.

Jane Bownes, the other director of Bradwells', said Mr Wosskow had promised to "do whatever he has to to make sure this company survives."

Ms Bownes said solicitors and accountants had been investigating the books of the Out of Town Leisure Group.

Jon Curtis, from Sheffield law firm Ironmonger Curtis, contacted the police on Wednesday afternoon.

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A meeting with South Yorkshire's fraud squad subsequently took place yesterday afternoon.

A police spokeswoman said: "South Yorkshire Police received allegations of fraud from a Sheffield company on Wednesday 14, July. Police are looking into these allegations."

Mr Burdall is also connected to the Norfolk Arms in Ringinglow, Sheffield, a well-known pub on the edge of the Peak District.

The pub's website identified him as managing director earlier this year but no one was prepared to comment yesterday.

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Neil Henry, who has been appointed administrator of all eight companies of which Mr Burdall was sole director, said it was too early to say what the level of debts were.

He went to Meadowhall yesterday to deal with the immediate task of trying to advise staff of their rights on unpaid wages and redundancy.

Mr Henry said: "The lead up to it has been very quick.

"The business hadn't been making money for a while and because the main director, James Burdall, had resigned the bank withdrew their banking facilities because quite rightly there was nobody in control of the companies.

"He was the sole director of the businesses over which I have been appointed. I believe he resigned last week.

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"It's too early to tell what can be rescued, I've got people looking into it.

"At the moment there's nobody lined up to take them on. It maybe that people come forward afterwards."

He added: "If I discover anything criminal, I am under a statutory obligation to make a report to the appropriate authorities."

A spokeswoman for Meadowhall said the shopping centre had received no formal notification of the company's administration.

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A statement added: "Meadowhall can confirm that all of the Group's outlets (French Caf, Fresh Sandwich Bar, Tyme, Fresh Sandwich Shop and Potato Bakehouse) are closed today (15th July) and we are expecting an official statement in due course.

"As a business we are committed to providing the best retail and restaurant offer for our customers."