Oddbins to go into administration

Wine retailer says decision follows refusal by HM Revenue & Customs to back a potential rescue deal Wine retailer Oddbins has said it will go into administration after HM Revenue & Customs refused to back a potential rescue deal. The struggling off-licence hoped to restructure its debts through a company voluntary arrangement (CVA), but the tax office – a significant creditor – would not support the move. A statement from Oddbins said the firm expects to enter into administration on 4 April, sparking fears for the future of its 400 staff. The retailer, which recently shut nearly 40 stores, is the latest independent wine trader in the UK to find itself in trouble. Threshers owner, First Quench Retailing, collapsed in 2009 and the Unwins chain folded in 2005. Oddbins, which has 89 stores left in the UK, has been under pressure amid competition from supermarket chains and falling consumer confidence. It is understood the chain owes HMRC £8m– about 30% of the company’s debt. Oddbins said a significant majority of creditors clearly wanted it to continue trading, but HMRC’s vote was heavily weighted and tipped the outcome. The company needed 75% of creditors to back the deal. Managing director Simon Baile, whose father founded the company in the 1970s, said he remained optimistic for the firm, revealing that a number of potential investors had come forward to buy the business, or parts of it. HMRC is unable to discuss specific details about its debtors due to its statutory duty of taxpayer confidentiality, but a spokesman said: “We do everything we reasonably can to support viable businesses but we have to do the right thing for the country’s finances and other creditors when casting our vote.” Retail industry Food & drink industry guardian.co.uk

Posted by on March 31, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.