This is the list of questions I submitted on Monday morning to Simon Baile, managing director of Oddbins, as yet I have had no replies. Not entirely surprising as he is doubtless very busy but if I was a creditor I would want answers to these questions before Thursday's meeting.
Questions for Simon Baile
Acquisition of Oddbins Limited
1. Could you clarify the total payable to Nicolas UK Limited for the acquisition of Oddbins Ltd in 2008? I see from Companies House records that a loan of £22, 077,042 was agreed between Ex Cellars Investments Ltd and Oddbins Ltd on 1st August 2008.
2) How much has been repaid and how much remains outstanding?
3) How much capital has Ex Cellars Investments Ltd, its shareholders and directors put into Oddbins UK Ltd to the present date?
CVA
4) Will Ex Cellars Investments Ltd, its shareholders and directors be making any contribution towards funding the CVA or will the £4.7 million due to be paid into the CVA’s over its duration be funded entirely by sales etc. generated by Oddbins Ltd?
Staff
5) The list of creditors includes some 140 + employees or ex–employees who appear to be owed approximately £686,232. This figure is approximate as it is not always clear who among the creditors are staff/ex-staff. There are also a number of individuals whose claims are to be confirmed. What is the correct figure please?
6) What is the total amount of redundancy monies owed to ex-staff? Is this a preferential debt or are they unsecured creditors? Are they too due to receive 21p in the £?
HMRC
7) Is it correct that last November HMRC insisted on ‘immediate payment’ of duty on leaving bond?
8) Do you expect HMRC to impose any conditions if they vote for the CVA?
Trading following the CVA
9) If the CVA is accepted it is expected that most suppliers would operate on a cash-with-order policy and if HMRC is demanding immediate payment of duty, then how will Oddbins Ltd manage to trade at a profit? The company’s accounts to 31.12.2009 shows that average payment trade creditors was 75 days and still Oddbins Ltd racked up losses of over £20 million?
British Gas
10) What is the estimated debt owed to British Gas?
Dispute with Castel
11) When the court case expected to be settled?
Debt owed to Oddbins Ltd by Ex Cellar Investments Ltd
12) If the CVA is accepted what will happen to this £17.53 million debt?
*
£8,116,042 million debenture – a question I might have asked
I did not ask about the current status of the £8.1 million debenture between Oddbins Ltd and Nicolas UK Ltd 'supplemental to an acquisition agreement between 1) Nicolas UK Ltd, 2) Ex Cellars Investments Ltd, 3) Simon Baile and Henry Young' on 1st August 2008. A number of Oddbins shops, including some in Aberdeen, Dunfermline and Old Coulsdon and mortgaged against this debenture.
See also: Oddbins – time to pull the plug!
6 comments:
New to this so this might be in the wrong place. Having spoken to some of Oddbins key suppliers it has become clear that Oddbins was trading in a manner that could be construed as illegal. Whilst on stop they requested £30k worth of stock. This was released with the promise of a BACS payment that afternoon, the payment never arrived and that suppliers debt was increased by 40%. Is this trading whilst insolvent? Sounds similar.
The other thing that sticks in my throat on this whole matter is wine journalists writing about the demise of Oddbins as though it is just unfortunate and that like some loved relative it should be kept alive as long as possible. The truth is this is a badly run business with no new ideas and even if a CVA is voted for then it will be dead within 12 months. If wine writers really think of themselves as journalists then they ought to do some research and write an article which gets to the bottom of this whole sorry mess. Just because they had a summer job at Oddbins in the 80's shouldn't stop them from asking some questions.
First question should be how much is Simon Baile paying himself to steer this business down the plughole and shafting so many people?
It was suggested to me yesterday that the high street surely needs Oddbins. That isn't a question that can be decided by suppliers or journo's it's up to customers and it would appear that the answer is no.
Vote against a CVA and get what little you can whilst you can.
Anon. Thanks for your comments. Could you please email details of your claim in the first paragraph as you are making a serious accusation and I need to see proof or to be able to verify it myself. Otherwise I regret that I will have to cut your first paragraph.
Anon. According to the last set of accounts filed with Companies House Simon Baile, who I assume is the highest paid director, received £151,000.
Amended post from anon (31.3.11) about Simon Baile:
'How so many of the journos and trade got sucked in by him beats me. The fact that he dare pose for photo of himself to be taken for the recent Victoria Moore article pouring himself a glass of champagne shows what a deluded egotist he is. '....Nero fiddled while Rome burns...'
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