1. Oddbins collapse
The collapse into administration of the UK’s leading high street off-licence chain was as upsetting as it was distressing for the global wine trade. While fingers of blame were pointed by all sides, those who took a step back to think about the long-term ramifications for the future of wine retailing in the UK were left with a bleak outlook.
Speculation about Oddbins’ financial health had been circling the trade for a good few months when it announced a strategic review in March. With memories of the collapse of First Quench Retailing and the subsequent painful financial fall-out still fresh in the minds of many, there were widespread fears of a repeat among wine companies awaiting remuneration from the chain.
Entry into a Company Voluntary Arrangement was confirmed on 11 March and Oddbins was placed into administration on 4 April after HMRC, by far the company’s biggest creditor, failed to agree to the terms of the CVA.
Simon Baile, managing director of the chain when it collapsed, pinned the blame on Castel, Oddbins’ previous owners though many pointed the finger of blame squarely at Baile.
Whoever was ultimately responsible, the fact remained that hundreds of wine companies were facing up to potentially catastrophic financial consequences of the collapse, with latest estimates suggesting unsecured creditors will get back as little as around six pence in the pound.
Those looking at the bigger picture also had reason to mourn for the high street. Figures released amid the Oddbins furore suggested that as much as three quarters of UK wine sales now come from the big four supermarkets. With Oddbins the latest to fall by the wayside, the picture for independent retailing looked bleak.
Deloitte, the administrator, is continuing to examine transactions between Oddbins and Ex-Cellar, which is controlled by Baile, actioned before the company went under.
The Oddbins name still remains on the front of 37 stores across the UK and last month the company presented a stripped back range of almost entirely new listings last night as the retailer showed off its makeover under the new ownership of Whittalls Wine Merchants, a subsidiary of EFB Retail.
