Oddbins closes in Harrogate

21 March 2011

Oddbins closes in Harrogate being part of 39 branches closing within the UK.

They were unable to provide specific details on the close of the Harrogate branch but have issued the following statement:-

Further to recent reports regarding Oddbins, it is worth reiterating that comments and speculation about the future of the company do not reflect the true facts concerning the core business, its future and the opportunity for Oddbins to remain as one of the leading high street drinks specialist retailers.

The core Oddbins business is profitable. We have proven through 2009 and 2010 that Oddbins is a relevant brand in the market and, despite continued tough trading conditions, we have been able to grow like for like sales, increase transactions and bring more customers through the door; raising the average bottle price in 2010 to just under £8.00.

The business, however, has been under continuous pressure as a result of legacy issues as well as challenging market conditions; which means it cannot continue in its current form. This is despite the positive consumer response to the brand and the Oddbins proposition. It was with deep regret that on Monday this week we announced the closure of 39 retail shops throughout the UK.

Christmas trading conditions amplified the unprofitable performance of those shops. Thus we have taken this course of action in order to realise the potential of the core business. The Oddbins retail estate now stands at 89 shops (including 4 branches in Ireland and our online and wholesale businesses).

We confirm that there is a dispute with Nicolas UK Ltd concerning the sale and purchase of the business back in 2008. The details of this dispute are in the High Court and therefore in the public domain. The legacy issues which the writ addresses have had an enormously negative effect on the Company.

Despite the resulting effect on cash, the core business remains very solid and in order to protect that core from the legacy issues and to maximise creditors’ recoveries generally, it is the Directors’ view (on advice) that the company should enter a Company Voluntary Arrangement, details of which we will be sending out shortly.

“We have been encouraged by the support that we have received from our supplier partners in recent weeks, who wish to continue to work with us to bring their products to a receptive market.” said Simon Baile, Managing Director.


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