Oddbins falls into administration

The owner of off-licence chain Oddbins has put its retail arm into administration, putting its stores at risk of closure. Duff & Phelps has been appointed as joint administrator while a buyer is sought for the business. It marks the second time in eight years that Oddbins has collapsed into administration. Oddbins’ owner, European Food Brokers, operates 101 off-licences as well as two convenience stores, staffed by around 550 people, but it has not specified how many of its stores and jobs will be affected. Oddbins has around 45 outlets. EFB’s other brands include Wine Cellar Trading and Whittalls Wine Merchants. The parent group and its drinks distribution business are not part of the insolvency and will continue to trade. Phil Duffy of Duff & Phelps said: “The continued decline in consumer spending, pointing to a squeeze on household finances, combined with rising living and national wages have put increased pressure on retailers’ bottom lines. “As wages struggle to keep up with the pace of inflation and continued, deepening unease and uncertainty over Brexit, means consumers are cutting back on spending. Add into that mix rising business rates and rents and traditional bricks and mortar, retailers are feeling the strain. “The joint administrators will continue to operate all stores as a going concern in the short-term as a financial review of all stores is completed, while a buyer is sought for the business and assets of the companies.” European Food Brokers, based in Walsall in the West Midlands, is owned by entrepreneur Raj Chatha and his family.   To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette