Oddbins has written to its suppliers to quash rumours of financial trouble at the high street off-licence, according to a report in The Telegraph, after former owner Castel lodged a claim against the business following a dispute over money.
Castel lodged a claim against the retailer after it withheld money as the result of a disagreement over sums owed as a result of the sale, which took place in August 2008. Following Castel’s claim at Companies House, Oddbins said that it has now settled the sum in full.
Oddbins managing director Simon Baile and chairman Henry Young wrote to suppliers and said that they were “very upset” by the actions of Castel, which owns off-license chain Nicolas in the UK.
They insisted that all rumours of financial trouble were untrue and said in a separate statement that Oddbins “is expected to become profitable again next year following substantial losses under its former ownership”.
In the letter to suppliers, Baile and Young wrote: “Unfortunately for some of the industry, particularly our competitors, Oddbins is very much still alive and kicking and has plans to be for many years to come.”
A spokesman for Castel is reported to have said: “As far as we are concerned, any financial issue which might have arisen between Castel, or Nicola, and Oddbins has now been entirely resolved.”
Over the past 14 months Oddbins has revamped its offer and introduced new point-of-sale material at its stores. The chain has 130 stores.