Oddbins interview: life after the CVA
If Oddbins can emerge the other side of the CVA, it will cut the number of lines it stocks to 700 or 800, and push online sales alongside developing new brands, says the beleaguered chain's managing director.
If Oddbins can emerge the other side of the CVA, it will cut the number of lines it stocks to 700 or 800, and push online sales alongside developing new brands, says the beleaguered chain's managing director.
In an exclusive interview with Harpers Wine & Spirit Simon Baile said although trading through the CVA would not be a "bed of roses", given that most suppliers would operate on a cash-with-order policy, the plan was to safeguard the lines that produced the biggest profits for the stores.
"In the short term we can't do all the things we want to do with our range to make it look as fantastic as we'd like it to be; it's sad but realistic," he said.
He said the combination of "durable" sales figures for the remaining 89 stores, meant that "as long as infrastructure costs are no greater than the money we take, we have a chance to make a profit".
The chain is involved in a high court dispute with former owner Castel, relating to redundancy liabilities of former staff.
The average spend per transaction at Oddbins in 2010 is, according to Baile, "pretty good for a bottle merchant" at £18.80, up 4.4% from £18 in 2009.
Case sales account for a fifth of overall sales, but Baile sees the web as a real opportunity. He described current web sales, which make up just 3% of turnover, as "pathetic", but a "big opportunity" going forward.
In future, Baile sees Oddbins as "the route to discovery". He points to the success of the Champagne range - previously "all brands and discounts" - last year it introduced "loads of small growers".
"There's a sea change towards those kind of products," he added.
He believes Oddbins is "well-placed" to introduce new products, and is "hungry" to focus on this.
"There's a lot of flak happening right now, but I'm absolutely driven to the finish line - I'm not just a madman."
Last week the extent of Oddbins' problems emerged as Deloitte published a 19-page list of creditors, with debts in the region of £20 million.
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