Business

Oddbins to go into administration

Oddbins store front
Image caption A number of potential buyers for the business have come forward

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.

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