Oddbins sale uncorks new family chapter

Oddbins, the loss-making wine retailer, has been sold to a consortium of investors led by the son of a former managing director of the company.

Simon Baile, who runs small wine retailer Ex Cellar, has bought Oddbins and its 158 stores in the UK and Ireland for an undisclosed sum from Castel Frères, one of France's biggest wine companies.

Castel acquired Oddbins for £57m in 2001 but has failed to generate a profit out of the business and has been forced to shut down stores as the company has lost out to rivals such as Majestic.

Mr Baile and his business partner Henry Young are likely to have picked up the company for a fraction of the 2001 price.

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Ex Cellar has stores in Paris and Ashtead, Surrey, and Mr Baile has previously run wine shops in London and Salisbury, Wiltshire, but has no experience of running a chain of Oddbins' size.

He admitted it would be a challenge and that after years of neglect the company had become "tired and in need of some TLC" but claimed it remained the "best brand on the high street".

Oddbins managing director and deputy managing director Fabrice Bidault and Eudes Morgan will be replaced by Mr Baile and Mr Young. Other members of the management team and Oddbins staff will keep their jobs for the time being.

"There will be a short period during which we review the current structure and develop plans for the future," Mr Baile said. "This is a cash positive business with plenty of stock, great locations throughout the UK and passionate staff."

Mr Baile's father, Nick, ran Oddbins in the mid-1970s. A biography of Simon Baile on Ex Cellar's website says: "He has been in the trade since birth, and bleeds wine, not blood."

Oddbins made a loss of £8.6m in the year to the end of 2006, according to the company's most recently filed accounts. Sales were flat at £121.3m.