Oddbins has gone into administration following their notice of intention earlier in the week. The administrators have said that they are looking for a buyer and all the shops will stay open for the moment.
539 employees are said to be at risk.
Store sales had fallen, a drop in the pounds value and a 17.8% rise in property rent, led to unfavourable conditions.
Unsurprisingly, as with most business matters today, Brexit is blamed as the main cause of the economic uncertainty. This adjoined with the high street crisis, left the company to file a notice of intention to Duff & Phelps.
'' We will endeavour to continue to operate all stores as a going concern while options are assessed for the business, including a possible sale. ''
Wine Cellar Trading Limited and Whittalls Wines Merchants, are among the businesses affected. Raj Chatha, who runs European Food Brokers, brought up some of Oddbins' stores through the subsidiary, after Oddbins fell into administration in 2011. There are 45 stores approximately in the UK.
A notice of intention allows the company protection from its creditors for upto 10 working days. During this time no creditor can take action like a winding up petition. There has to be a legitimate "intention" so therefore it cant be abused by just trying to put off the inevitable. Therefore it will almost certainly go into administration unless a buyer can be found to take on the liabilities or more cash is forthcoming.