A West Midland-based cash and carry has entered administration, state recent reports citing an official notice.
According to the reports, the notice revealed that SK Food and Drinks Limited, based in Birmingham, entered administration on April 21.
The business officially engages in the "non-specialised wholesale of food and beverages", according to Companies House. It has not shared any statements about entering administration, so a reason has not been revealed.
While SK Food and Drinks Limited has not addressed its move into administration, companies that have gone through similar processes have blamed things like changing customer habits, labour costs and operational costs for financial difficulties.
SK’s customer base is split 60-40 between retailer and on-trade customers. While SK Food and Drinks Limited has not ceased operations, its website is currently not active.
The SK initials stand for the names of the business’ founders, Sandhar and Kang. Earlier known as Sandhar and Kang Cash and Carry, it began in 1974 and was reportedly one of the first cash & carries to open in the Birmingham area, after Batleys.
Late Karnail Singh Sandhar, one of the two founder, played a key role in bringing Asian food to the UK and Canada. He was also the first Asian-origin man to own a convenience store in the entire Warwickshire region.
At its peak in 1980s, Sandhar and Kang cash and carry was known as Midland’s largest and cheapest wine and spirits wholesaler.
Karnail left Sandhar and Kang Cash and Carry in the late 1990s. In 2011, the cash and carry was sold to new owners Gurinder Gill and Ajminder Singh and was renamed as SK Food and Drinks.