Oddbins payout welcome news

11th November, 2011 by Ron Emler

Good news! The unsecured creditors of Oddbins, which collapsed into administration at the end of March, will get some of their money back. Bad news, it probably won’t be much.

The administrator, Deloitte, is giving no guidance on when a payout is likely. Nor do some of the 732 staff who lost their jobs know when they will get the £120,000 they have claimed as preferential creditors for unpaid wages and holiday entitlements.

Those are the principal statements in the statutory six-month report to creditors from Deloitte, the administrator.

So far some £2.3 million has been raised through assets disposals, including the sale of 37 stores to European Food Brokers, which is continuing the Oddbins name. Simon Baile, the former managing director, also took five outlets from the administrator.

Lead administrator Lee Manning says that after paying the secured creditors (including HM Revenue and Customs, which was owed £8.6m) “there should be sufficient asset realisations to make funds available to the unsecured creditors”.

That will be welcome to the many suppliers left with large bad debts because of the collapse of one of their biggest customers. Most have written off the losses, so any payment (6p in the pound has been mooted in some quarters) will be an ironic bonus in a future year’s accounts.

The problem is that no-one can tell when they might get it because some litigation is continuing, as are attempts to conclude further asset sales. To date, unsecured creditors have lodged claims totalling £12.6m.

They include not only trade suppliers but also landlords and utility companies. It is still possible to lodge a claim, which heightens the administrator’s difficulties in calculating the final liabilities.

By the start of October, the administrators had chalked up £2,065,964 plus VAT in fees, a sum that will continue to rise until next April, which is when the court and creditors have to decide whether the potential to raise further cash is likely to outweigh the fees incurred in pursuing it, or whether to wind up the old Oddbins .

As part of its statutory duty, Deloitte has reviewed the actions and conduct of the Oddbins directors (Simon Baile and chairman Henry Young) in the two years before the collapse of the company and a confidential report was sent at the end of September to the Insolvency Service.

In addition, Deloitte is continuing to examine transactions between Oddbins and Ex-Cellar, which is controlled by Simon Baile, before the company went under.

Meanwhile, as if the Oddbins collapse was not enough for producers, wholesalers and importers to contend with this year, Baker Tilley, the company restructuring specialist, reports that 48 hotels and licensed premises in England and Wales called in an administrator between June and the end of September.

That was a 33% rise on the second quarter of this year and 26% higher than at in the same period in 2010.

One Response to “Oddbins payout welcome news”

  1. So £2.3 million raised by asset disposals, and over £2 million charged by the administrators to date. Well, well, well – I know what is the best business to be in.

    Keith Grainger

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Job vacancies

FINE WINE SALES ADMINISTRATOR

Davy's Wine Merchants
London, UK

Business Development Manager - On Trade

FINE+RARE
Central London, GB

Regional Sales Manager

Swallow Associates Ltd
Home Based: North-West England, UK

London Account Manager Role (Full Time)

LITTLE BIRD GIN
Home based with UK travel. , GB

Sales Operations Manager

Bibendum PLB
London, UK

Digital Marketing Executive (online content & community manager)

Corney & Barrow Limited
London E1W (near Tower Bridge), UK

Store Manager – Premium Drinks

Amathus Drinks PLC
London, UK

On-Trade Regional Sales Manager

Anthony Byrne Fine Wines
London and the South East, UK

Wine Sales – Northwest England

Gerrard Seel
North West England

Senior On-Trade Sales Manager – English Sparkling Wine Company

COREcruitment
London based with national travel, UK

National Account Manager – RTM – On Trade

COREcruitment
Home based with frequent UK travel

Sales Account Manager - Wine

COREcruitment
London, Devon, Manchester, Liverpool, Farnham, Cambridge, UK

The Global Sparkling Masters 2017

Deadline : 14th June 2017

The Global Syrah Masters 2017

Deadline : 14th June 2017

The Global Malbec Masters 2017

Deadline : 14th June 2017

The Global Beer Masters 2017

Deadline : 1st August 2017

Click to view more

Global Chardonnay Masters 2016

Now in its fourth year, the competition will identify the best Chardonnay from all around the world in every price range.

The Asian Cabernet Sauvignon Masters 2017

the drinks business Hong Kong announces its first year of The Asian Cabernet Sauvignon Masters.

Rioja Masters 2016

Now in its fifth year, the competition will recognise and reward the finest Riojas on the world stage.

Fortified Masters 2016

Now in its third year, The Fortified Masters will reward the best fortified wines on offer.

Click to view more