Earthy Foods & Goods, a small group of organic food stores and cafés in Edinburgh, has gone into administration, owing nearly £1m.
The business, closed one of its outlets at Canonmills Bridge last September, leaving two sites in Portobello and another in Causewayside.
Kenneth Pattullo and Adam Southard, from Begbies Traynor were appointed joint administrators on 9 January.
A spokeswoman for the administrator said failure was because of “several years of losses, leading to excessive creditor pressure and the company being unable to pay its debts.
She said a floating charge holder was owed more than £200,000, the unsecured creditors are owed approximately £772,000.
Staff were also owed wages, although the administrators did not say how many or how much.
The administrators said they were looking to achieve a sale of the business and assets, which comprised fixtures, fittings, stock and intellectual property.
Earthy Foods & Goods, incorporated in March 2006, has failed to post its accounts at Companies House for the year to the end of last March, which were due by the end of December.
The administrator said it had not yet had sight of the financial statements for the period ending 31 March last year or management accounts for the period since.
However, accounts filed at Companies House show year-on-year losses across previous years.
The abbreviated balance sheet as at the end of March 2016 gives the profit and loss account showing a loss of £960,617, compared with a loss of £789,302 the previous year.
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