Oddbins to close 39 stores

Published: 07 March, 2011

Oddbins is closing 39 branches across the UK as part of its restructuring process.

Oddbins is closing 39 branches across the UK as part of its restructuring process.

A statement from the firm said: "Due to the tough economic climate, the business is being restructured with the result that 39 branches across the United Kingdom will be closed over the coming weeks.

"The staff have been informed today.

"The decision is part of a complete strategic review to ensure the business can move forward on a solid footing."

Last week the 128-strong high street wine retailer drafted in restructuring specialists Spectrum Corporate Finance to advise on "strategic options". The firm is also understood to be taking advice from Deloitte.

At that time, managing director Simon Baile said: "We are aware of certain rumours circulating about Oddbins.

"Since we took over the company in 2008, the business has been transformed and during 2010 we saw our footfall increase significantly for the first time in many years, added to which we have seen strong growth in average spend and Oddbins average bottle price is now the highest of the high street multiples."

Baile bought Oddbins two years ago and in that time has halved operating losses from £8.3m in 2008 to £4.6m in 2009. Like-for-like sales were up 5% in the first half of 2010, but the business had a difficult Christmas.

Printer friendly version