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Oddbins attracting interest, says Deloitte

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Beer and wine retailer Oddbins is attracting interest from other businesses, according to its administrator Deloitte.

The professional services firm was announced as its administrator on Monday after the anticipated announcement that the retailer had lost its battle to avoid administration.

Oddbins employs around 400 members of staff at its 89 nationwide stores and Deloitte seems confident that it will be able to find a buyer for the entire operation.

Lee Manning, joint administrator and Deloitte Partner, said: “We are pleased to have received interest from a number of parties interested in buying the business.

“We will continue to trade the company while seeking a sale as a going concern. Employees will continue to be paid and will be fully briefed.”

A proposed Company Voluntary Agreement, which would have seen its creditors paid 21p in the pound, would have saved the firm but its largest creditor HM Revenues & Customs refused to agree to the deal.

Despite Deloitte’s confidence, a retail insolvency professional whom Retail Gazette spoke to last week argued that a break-up sale is the most likely outcome of discussions and said that larger retailers had made it impossible for a business like Oddbins to survive.

Richard Curtin, Insolvency Lawyer at Faegre & Benson, said: “After the fall of Threshers and Wine Rack it is no big surprise.

“The root cause of it is massive bulk buying power of the supermarkets undercutting its prices and removing any place in the market for Oddbins.”

Published on Tuesday 05 April by Editorial Assistant

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