Early interest in Oddbins as CVA fails

Published: 31 March, 2011

Potential buyers for Oddbins are already making enquiries about taking on the stricken off-licence chain as a going concern.

At today's creditors' meeting in London, HMRC rejected plans for a company voluntary arrangement which would have allowed the chain to defer its debts and continue trading under the stewardship of Simon Baile and Henry Young.

The CVA required a 75% majority to succeed, but HMRC's 30% share of the vote meant the plan was rejected, even though the majority of other creditors voted in favour.

Instead, the company will go into administration on Monday, leaving Deloitte with the job of realising the best possible outcome for creditors, who are collectively owed £20 million. Already there have been expressions of interest in buying the Oddbins name though it is not certain if any bids will include the entire estate of 89 shops.

Creditors are expected to receive between 5p and 7p in the pound.

A spokeswoman for Oddbins said: "Despite ongoing discussions with HMRC over the last four weeks, the decision was made late yesterday not to support the CVA.

"As HMRC is a significant creditor, this means the CVA cannot proceed and Oddbins is expected to go into administration on Monday, 4th April, following the court hearing of the administration application.

"Deloitte confirmed at today's CVA meeting that not including the HMRC vote, there was an 84% value vote by proxy in favour of the CVA showing that a significant majority of creditors clearly wanted to make it work."

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