Wine retailer Oddbins is expected to go into administration on Monday after it was unable to proceed with a company voluntary arrangement.
HM Revenue & Customs (HMRC), the retailer’s largest creditor, opted not to support the CVA last night, ahead of a the creditors’ meeting that was due to take place today. It is owed more than £8.6m by the retailer, it is understood.
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 April 4 following the court hearing of the administration application.”
Deloitte, who was advising on the CVA, said that not excluding the HMRC, 84% of creditors by value would have supported the CVA, “showing that a significant majority of creditors clearly wanted to make it work”, according to Oddbins.
Two or three parties are interested in acquiring the brand, including trade buyers and private equity firms.
A source told Retail Week that they hoped a deal could be concluded quickly.
Oddbins had applied to go into administration on Friday in order to protect the business from creditors’ claims, ahead of today’s crucial meeting .
Under the terms of the CVA, Oddbins was aiming to close a third of its stores - 39 altogether - and its London head office, resulting in 120 job losses.