Oddbins applies for administration

Published: 25 March, 2011

Oddbins has applied to enter administration, in an effort to prevent claimants derailing the CVA.

A spokeswoman for the high street off-licence chain said the move was a "precautionary measure".

Creditors filed claims against the firm and also have the right to issue winding up orders, which would force the firm into administration.

British Gas is one of the claimants, although the amount it is claiming for is not yet unconfirmed, the Deloitte document states it is owed £57.65.

The spokeswoman said that applying for administration voluntarily means that Oddbins will have 10 days grace to allow the CVA to take place (on March 31), since a moratorium will apply on any claims sought in this time. It will continue trading from its 89 stores.

However, creditors retain the right to appeal.

The troubled chain announced it was closing 39 stores as part of a strategic review 10 days ago. It has since proposed entering a company voluntary arrangement, which would see creditors get just 21p in the pound back on what they are owed.

This will go to a vote next week, and Deloitte will announce the outcome on April 4.

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