Oddbins to go into administration

[Innes]

I suspected that it was going to happen and it now looks like it is going to. I just saw this on the BBC news site:

Wine retailer Oddbins is set to go into administration after failing to reach a deal with its creditors.

Oddbins had tried to avoid administration by getting creditors to accept lower repayments, but one of the biggest, HM Revenue and Customs, refused to support the move.

It is now expected to formally enter administration early next week.

But it said it was "optimistic" that a buyer could be found to keep the business going.

Oddbins managing director, Simon Baile, said a number of potential investors had expressed interest in buying the business, or parts of it, as a going concern.

Oddbins said that a majority of creditors at a meeting earlier had voted in favour of the rescue plan, or Company Voluntary Agreement, and wanted to see the company continue trading. It had proposed paying creditors 21% of the money they were owed.

But the opposition of HMRC meant the CVA could not proceed, Oddbins said.

Specialist wine retailers have suffered from stiff competition from supermarkets.

Threshers-owner First Quench collapsed in 2009.

[William]

I have been watching this and really didnt expect everyone they owed to accept 21% of the money they were owed so it is no surprise that they will go into administration.

I am sure someone could do something with the internet side of the business, perhaps re-establish it as a premium wine and spirits retailer perhaps with a handful of shops operating in prime locations as premium wine and spirits shops.

[James T]

I think a lot went on behind the scenes at oddbins to end up this way and from a whisky drinkers point of view in recent years they have been far from being a whisky specialist so i would assume the wine and other spirits side of the business was the same. I think they basicaly lost contact with what made them successful.

[Keith]

[Archer]

Seen this on the bbc news this evening. I would think someone would be able to make something of some parts of the oddbins business, there is always room online for anyone who can offer competitively priced premium wines and spirits. I am sure this side of oddbins could be developed.

[Bookie]

I read that they will officially go into administration on Monday 4th April. I wouldnt think the administrators will find a buyer for oddbins current business model set up which has quite clearly failed.

The online set up with a few prime location shops William mentions could work and could possibly retrieve something from the business. Just look at the specialist whisky retailers online now, they are thriving.

[Cuba]

I see the oddbins website is still up and running and shows no sign of any problems. I agree it is certainly the part of the business which has potential for success.

[Keith]

[Crane]

I wonder if they will be selling off the stock cheap in the stores that are closing

[Andy M]

37 Oddbins shops have been sold as a going concern to European Food Brokers Ltd

The Oddbins brand name has been sold separately

Full list of shops sold:

Scotland (10)

Aberdeen City
Rosemount, Aberdeen
Bruntsfield, Edinburgh
Queensferry Street, Edinburgh
Elm Row, Edinburgh
Charing Cross, Glasgow
Hyndland, Glasgow
Mitchell Street, Glasgow
Queens Park, Glasgow
Shawlands, Glasgow

London (20)

Balham
Bayswater
Blackheath
Chiswick
Clapham
Crouch End
Earls Court
Gloucester Road
Kennington
Kentish Town
London Bridge
Northcote Road
Pimlico
Portobello
St Margarets , Twickenham
South Kensington
West Dulwich
West End Lane, West Hampstead
Stoke Newington
Wandsworth

Rest of England (7)

Clifton
Poole
Chorlton, Manchester
Tunbridge Wells
Allerton Road, Liverpool
Oxford High Street
Little Clarendon St, Oxford