UK wine merchant Oddbins on verge of collapse for second time in a decade

UK wine merchant Oddbins is on the brink of collapse for the second time in less than ten years, and has appointed advisers to look into options for the future after an “extremely tough” Christmas trading period.  

Directors emailed staff at parent company European Food Brokers group, which also includes Wine Cellar Trading and Whittalls Wine Merchants, telling them they had decided that its retail businesses “cannot continue in their current form” and may have to be sold.  

According to the Guardian, administrators Duff and Phelps have been appointed to consider a way forward for the beleaguered group which employs over 500 people in more than 100 off licences.     This would be the second time that Oddbins, which was established in 1963, has collapsed in less than a decade. EFB bought its stores out of administration in 2011.  

“The past couple of months have been extremely tough trading wise and like the rest of the high street in the UK the important Chistmas period was difficult for us,” said the email.  

The directors added that sales at established stores were down and that the company had been hit by a significant drop in the value of the pound against major currencies, and an average 17.8% rent rise on its properties, all of which had put a “significant strain on the cash flow of the business.”    

“At this stage, all businesses should continue to trade until further notice. However, we owe it to you as our loyal employees to be honest and say to you that it is highly likely that, devastatingly, there will be job losses in the near future,” the email warned.  

According to Drinks Business, a spokesman for the company blamed “the deterioration of the high street, combined with the continuing economic uncertainty surrounding the withdrawal of the UK from the EU" as key factors contributing towards its collapse, amid a "tough physical retail market.”