Oddbins on the brink of collapse.
29/1/2019.
Oddbins on the brink of collapse . More than 500 jobs are at risk as Oddbins faces collapse for the second time in less than ten years.
Its owner, European Food Brokers, has reportedly lined up Duff & Phelps to handle a pre-pack administration.
European Food Brokers is blaming tough conditions on the high street and economic uncertainty created by Brexit for the situation.
They said it was continuing to trade and hoped to seek a buyer.
The West Midlands-based business confirmed it had filed “a notice of intention” to appoint Duff & Phelps following a report by Sky News.
“The deterioration of the high street, combined with the continuing economic uncertainty surrounding the withdrawal of the UK from the EU, has resulted in an unsustainable, tough physical retail market,” it said.
“We will endeavour to continue to operate all stores as a going concern while options are assessed for the business, including a possible sale,” it added.
The businesses affected include Wine Cellar Trading Limited and Whittalls Wines Merchants.
Oddbins went into administration back in 2011 after HM Revenue & Customs refused to support a deal with its creditors.
EFB, which is run by businessman Raj Chatha, bought up some of the Oddbins stores at the time through its Whittalls subsidiary.
Oddbins has approximately 45 stores around the UK.
Update on 4th February 2019.
European Food Brokers (EFB), which owns brands including Oddbins and Wine Cellars, has called in administrators for its retail operation, with Duff & Phelps to run the businesses until a buyer is found. Joint administrator Phil Duffy said inflation and “deepening unease and uncertainty over Brexit” have squeezed retailers’ margins. EFB bought Oddbins when it last fell into administration in 2011. Julie Palmer at Begbies Traynor said: “Oddbins has been slipping down the pecking order for consumers as it struggled to compete with supermarkets offering a selection of discounted and premium wines.”
How can CPA help?
Are you a supplier of oddbins?
Just because you have been dealing with a customer for many years without any issues, it doesn’t mean you are trading risk free.
Healthy companies can see their fortunes change , leaving suppliers who have extended credit caught out.
Just look at how many big retailers have disappeared already in recent years.
At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.
We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports predict approximately 96% of company insolvencies long before they arrive.
Companies in trouble usually have very bad bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.
It maybe too late for suppliers of oddbins but we might be able to help you avoid the next one.
As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When you customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.
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