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News
Oddbins to close 39 stores
UK off-licence chain Oddbins has confirmed it is to close 39 stores – almost a third of its total number of outlets – as part of a strategic review to help secure its future.
The loss-making retailer recently appointed Spectrum Corporate Finance and Deloitte to carry out a top-down review of the business and help secure fresh investment.
Around 175 jobs are understood to be axed as a result of the closures announced yesterday (8 March).
A statement from Oddbins said: “Due to the tough economic climate, the business is being restructured with the result that 39 branches across the United Kingdom will be closed over the coming weeks. The staff have been informed today.
“The decision is part of a complete strategic review to ensure the business can move forward on a solid footing.”
In the last decade Oddbins has seen its number of stores drop from 250 to 128. Just 89 will remain in business after the newly-announced closures are completed.
The company is understood to require more working capital after weak sales, particularly over the Christmas period, were compounded by the financial strain of a long-running legal dispute with its former owner Castel, the French wine producer.
The full results of the strategic review were expected yesterday (Tuesday, 8 March), but the company now expects to make a more detailed announcement later in the week.
Most recent accounts for the company showed that it turned over £67 miilion in the year to the end of December 2009, with pre-tax losses of £4.5m, an improvement on the previous year’s pre-tax losses of £6.2m.
Alan Lodge, 09.03.2011