Loire – more bad financial news: Pierre-Jacques Druet (Bourgueil) in liquidation

 Pierre-Jacques Druet and Marc Vanhellemont 

@Salon des Vins de Loire 2011

with a bottle of his Bourgueil Rosé that launched Les 5 du Vin 

 

No recent accounts filed

 Dates of administration and liquidation

Sadly Pierre-Jacques Druet, one of the finest winemakers in Bourgueil, has gone into liquidation. Initially the domaine went into administration (redressement judiciaire) on 11th January 2009. Then on 17th March 2016 the business unfortunately went into liquidation. Sadly I suspect that Pierre-Jacques was a way better wine producer than businessman. I know that Majestic, who sold his wine in the UK, found him increasingly unreliable with regard to fulfilling their orders. 

I understand that Druet's vineyards remain unpruned this year. A worldwide check using wine-searcher shows very few retailers carrying his wines with 2011 the most recent vintage available and most listings for vintages in the first decade of the 21st century. 

All in all this is a great shame as Pierre-Jacques made some lovely wines.   

 Druet was not easy to find!

'Retail genius' Simon Baile in administration again

The Farringdon Street Oddbins – one of five shops Baile took on 

Simon Baile's ExCellar Ltd went into administration yesterday. See Harpers report here. Apparently Baile's company was facing a winding up order brought by South Western Trains.

Following the collapse under Baile of Oddbins he bought five shops from the administrator. Some soon closed down – see here.

Oddbins: buyers’ interest grows

Following a 30-minute hearing yesterday in the High Court (London) Oddbins Ltd and Oddbins Properties Ltd were put into administration. Lee Manning and Matthew Smith, partners at business advisory firm Deloitte, have been been appointed joint administrators for the two companies.

Oddbins was placed in administration on the basis of a pending sale of the business and the need to keep the business and its assets viable during this process. It was not put into administration as a going concern as it was insolvent both with respect to its cash flow and balance sheet.

“We have received a number of expressions of interest,” Lee Manning told decanter.com. “Some are interested in the whole portfolio, others in some of the shops, while others are just interested in the stock. I would say the number of expressions of interest is still in single figures but it is now approaching double.

“Some of the parties are in the wine trade, some outside. However, we haven’t received any offers yet. I expect this initial process to probably take at least another week before we start moving forward."

"We will continue to trade the company whilst seeking a sale as a going concern.  Employees will continue to be paid and will be fully briefed.”  

British Gas’ winding up order, which prompted Oddbins to seek protection from its creditors through administration, was dismissed at yesterday. It is understood that there were at least two other winding up orders served on the company. One from Pol Roger Ltd, owed £273,612, was withdrawn as they wanted Oddbins to survive.

High noon for Oddbins: formally in administration

The adminstration orders for both Oddbins Ltd and Oddbins Properties Ltd was formally agreed by Mr Justice Morgan sitting in Court 19, Royal Courts of Justice at 12.15pm today. The judge had, however, already indicated on the stroke of noon that he was prepared to sign the orders. The winding up petition presented by British Gas due to be heard on the 20th April was dismissed at the same time. British Gas were not present at the hearing.

Mr Justice Morgan was swiftly persuaded that Oddbins Ltd was both cash flow and balance sheet insolvent and that the business had to go either in administration or liquidation. Oddbins had been due to pay a bill of £1.5 million followed by one of £1.9 million. The judge quickly accepted that administration was the right course for Oddbins Ltd (the trading company) but toyed with the possibility of putting Oddbins Properties Ltd into liquidation. However, he was persuaded that this would make the administrators' job more difficult, more burdensome and would cost more, so he agreed on administration for both companies.The liquidators are expected to be Matthew David Smith and Lee Manning of Deloitte – more details soon.

Oddbins was placed in administration on the basis of a pending sale of the business and the need to keep the business and its assets viable during this process. It was not put into administration as a going concern.

There was a brief discussion of the debt of £17.5 million owed to Oddbins by Ex Cellar Investments Ltd. This was money lent by Oddbins "to buy itself" and it was described both by the judge and by counsel for Oddbins as "a whitewash procedure" and that the debt has been "whitewashed". It was accepted that the debt was "realistically worthless"as Ex Cellar Investments Ltd's sole asset is Oddbins.

It was agreed that notices and correspondence to creditors could be sent electronically.

Oddbins update

HMRC refuse DVA. Oddbins into administration. Further details later.

Brief update:

Oddbins will go into administration on Monday if application is approved in High Court, London.

The potential administrator expects that the stores will continue to trade and the staff will be paid and hopes to sell company as going concern. We were told that two or three offers have been received.

Less good news for Oddbins staff who were made redundant. I suspect that the biggest hit, apart from staff made redundant, will be some of the suppliers, especially those in for large sums and who may also have been hit by Threshers and Unwins. There were some very glum faces leaving the CVA meeting this morning.

HMRC pulled plug at 4pm yesterday.

More details shortly.

Oddbins: administration pay out estimate drops from 13.6p to 7.5p

See report in The Drinks Business:

'Oddbins lowers administration payout forecast

Oddbins creditors face receiving just 7.5 pence in the pound should the Company Voluntary Arrangement not be accepted at tomorrow’s creditors meeting in London, after forecasts for payouts should the retailer enter administration were downgraded.'

Does this mean that Oddbins is in an even worst state than was initially thought? Furthermore if this is the case shouldn't the estimated pay out through the CVA also be cut by a similar amount?

Comment from a spokesperson:
'The amount payable under Administration is only ever a forecast. Threshers payout is now down to 2 pence but the creditors haven't actually received anything yet.

The amount payable under the CVA remains at 21 pence, plus 50% of any outcome from the court case. A payment schedule appears within the CVA documentation (www.deloitte.com/oddbins).

Although Simon Baile continues to have discussions with investors it is still too early for anything to be announced. The reduction is a reflection of the fact that no purchasers have come forward.'

Oddbins applies for administration

Oddbins applies for administration

Oddbins has applied to go into administration to protect it from creditors applying for winding up orders.

Going into administration gives Oddbins ten days of protection from its creditors. The company voluntary arrangement (CVA) put together by Deloitte will be voted on at a meeting in London on Thursday 31 March.

British Gas, which is owed £57.65, is known to have issued a winding up order. It is not known if they are the only creditor to issue a winding up order.

A spokesperson for Oddbins told Decanter.com: ‘It is a precautionary measure to allow the CVA to go through'

'The application gives Oddbins a moratorium over any claims of 10 days and the CVA vote is on 31st March. These creditors will be bound by the terms of the CVA although they can appeal if they feel the situation is unjust.’ 

Decanter.com understands that Oddbins became aware of the claim by British Gas last night, and had initially believed claims could not be processed once a CVA had been announced.

Although the British Gas winding up order may possibly have been generated by a computer controlled account it doesn’t explain how British Gas could have applied for a winding up order on a debt of just £57.65 as a debt has to be £750 or more to be eligible to issue one. Late flash: explanation is that the amount listed as owed to British Gas excludes estimates.

Presumably there must be other creditors who have opted for winding up orders.

See also: 'Suppliers being 'asked to fund Oddbins rescue' Graham Holter in Harpers Wine & Spirit

Oddbins in dire straits?

Oddbins seeks a CVA (creditors voluntary arrangement) to escape administration 
Stricken multi-drinks retailer Oddbins appears to be facing a bleak future and may go the way of other failed high street drinks retailers like Unwins and Threshers (First Quench).
 
 Oddbins’ management is seeking agreement on a CVA (creditors voluntary arrangement) that will pay creditors 21p in the £. Oddbins is known to owe HMRC (HM Revenue & Customs) £8.6 million and it is reported that there are nine companies owed over £100,000 each. These include importers Hatch Mansfield (£310,000), Concha y Toro (£242,000), Halfords (£173,500) and De Bortoli Wines (£107,000). Other notable creditors include Diageo GB (£84,000) and electricity supplier EDF (£51,000). The total figure is not yet known but some estimate that the total is over £20 million.
 

The proposed CVA will be voted upon at a meeting of creditors on 31^st March. For the proposals to be accepted they must attract 75% of the vote by value. If the deal is accepted creditors will be due to be paid 21p for every pound owed spread over 46 months. If the CVA is not approved and Oddbins goes into administration then it is estimated that the payout would be down to 13.6p in the pound.  However, companies would be more likely to get their money sooner and for some this may be the more attractive option.  

 

Oddbins are closing 39 stores and laying off 120 staff. 

Assuming that Oddbins do get approval for their CVA proposals on 31st March, they will still face a very tough challenge making the 'core' that remains profitable. Suppliers are likely to want payment upfront when selling goods making it very hard to be competitive on price. Furthermore since the business was founded in 1971 it has a long history of unprofitability under its various owners, who have included Seagram, Vivendi and Castel. 

My guess is that Oddbins will go the way of Threshers (First Quench) and Unwins – No-bins beckons? 


See also here (Victoria Moore plus comments), here (harpers wine & spirit)  and here (drinks business).