Mon, 28 Mar 2011 | ADMINISTRATION
Two weeks after commencing a CVA process, Oddbins has now requested to be put into administration for protection against its creditors.
We reported two weeks ago that the CVA would involve selling a third of its stores and making 15 head office staff redundant. Now, after a creditor recently issued a winding-up petition against it, Oddbins aims to enter administration as a ‘purely precautionary’ measure.
Having applied for administration, the off-licence chain will now have a ten-day breather or ‘moratorium’ in which no claims against the company can be processed.
A meeting due to take place on March 31 will determine Oddbins’ future. If the go ahead for the CVA is not given – it needs the approval of 75 per cent of the creditors - it will be formally placed into administration on April 4 at a court hearing.
Oddbins built up a £6 million debt with HMRC last year, with an agreed ten-month repayment plan for £600,000 per month. Oddbins' owner Simon Baile denied this last week.
A source close to the business commented on the situation: “Even if HMRC votes yes to the CVA, they will ask Oddbins to put up a bond of about £3-£3.5 million just to cover duty liability, so essentially it would go straight into administration.”
A senior trade person said: “They haven’t actually put a penny into the business – they’ve essentially been taking working capital out of the business to make payments. Creditors have in a very real sense been funding the acquisition of Oddbins and they’re being asked to refinance the rest of the deal.”
In a prime location, this freehold business opportunity includes a detached, well-equipped bakery factory along with a retail outlet and cafe, all part of a family business with a century of trading history.
Established in key industries like power generation and rail, this company offers specialised electrical and engineering services across the UK and Ireland, boasting strong relationships with blue-chip clients and a reliable income stream.
This well-established company has a decade-long track record in a growing market and is fully relocatable or can be operated remotely, providing flexibility for the new owner.
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