Tue, 10 Mar 2020 | BUSINESS SALE
Administrators of the parent company of high-street wine merchants Oddbins, Whittalls Wines Merchants and Wine Cellar Trading remain hopeful that a significant number of stores can be sold to a preferred bidder.
EFB Retail Ltd., Whittalls Wine Merchants 1 Ltd., Whittalls Wine Merchants 1 Ltd., and Wine Cellar Trading Ltd. have been trading under Duff & Phelps since entering administration in January 2019 citing Brexit, economic uncertainty and a poor Christmas trading period.
The companies were also affected by HMRC revoking the excise approval of parent company and chief supplier European Food Brokers Limited (EFBL), which lost its bonded warehouse, affecting cashflow.
The administrators identified 43 unprofitable stores, before closing 5 more, leaving 53 trading. A rescue plan involving the sale of some stores to an anonymous preferred buyer was drawn up last year.
In a notice filed last week, joint administrators Philip Duffy and Matthew Ingram said the proposed buyer had been informed the businesses will be wound down if the deal is not completed with the next month, stating that it was unfeasible to continue trading under administration indefinitely.
The administrators said that they remained hopeful of selling the stores to the preferred bidder and would still prefer to sell to a purchaser who would take a significant number of stores.
However, they added that there have been numerous offers to acquire stores on a piecemeal basis and that these interested parties could be approached in order to maximise returns for creditors.
The administration period has been extended until January 2021, but Duff & Phelps say they do not think they will still be trading the comapnies before the end of the next reporting period on August 29.
The administrators have forecast sufficient asset realisations to enable a distribution to be made to secured creditors, with £56,804 of £551,000 owed having been collected so far.
The companies’ gross sales stand at £24.9 million for the year to January 29, 2020. They held no freehold property at the time of administration, operating instead from 101 UK leasehold sites, with head offices in London and Walsall. Assets including four vehicles are also up for sale.
The first shop was opened in 2016 by the original founder, using fresh toppings, handmade dough and a 400-degree fire oven. The franchise has gone from 1 London shop to over 120 branches across the country including Scotland & Wales.
LEASEHOLD
This is an award winning, licensed restaurant, that is situated in a hugely desirable town within West Sussex. Established in 2008, the restaurant has a huge reputation locally and the new owner is going to benefit hugely from the goodwill attached t...
LEASEHOLD
The company supplies a multitude of primary schools across the region with hot meals. The business has been working in the food market for over 15 years and has developed a strong reputation within the industry.
LEASEHOLD
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.