Oddbins applies for administration as creditor meeting looms

Oddbins applies for administration as creditor meeting looms

Oddbins has filed for administration in the UK as the wine retailer's creditors prepare to vote on a deal that would see them recoup only a fifth of what they are owed.

In a statement released late on Friday (25 March), Oddbins said that it has filed for administration "in order to protect the company against claims from creditors". The UK wine retailer has been fighting to avoid collapse for several weeks, damaged by poor trading and a lack of cash.

Two weeks ago, just-drinks revealed that Oddbins had proposed a company voluntary arrangement (CVA) with its creditors, to whom it owes around GBP20.7m (US$33m). On Thursday this week (31 March), creditors will meet to vote on the CVA, which would allow Oddbins to repay just GBP0.21 per GBP1 owed. The retailer needs three quarters of creditors, in value terms, to back the deal. Otherwise, it faces bankruptcy.

Oddbins said that it has filed for administration in order to allow the CVA meeting to take place. "Going into administration allows Oddbins a moratorium over any claims of ten days," it said, adding that its 89 remaining stores will continue trading as normal for the time being.