Threshers’ owner in administration

ADMINISTRATORS were called in to the company that owns the off-licence chain Threshers last night putting 6,280 jobs at risk.

KPMG has been appointed to Hertfordshire-based First Quench Retailing which also owns Wine Rack and The Local. The group has 1,200 shops with 130 in the North West employing some 770 staff. It is understood they will stay open while KPMG seeks to sell the business as a going concern.

In a statement last night First Quench said: “The board of FQR confirms that it has appointed KPMG as administrator this evening. The board’s discussions with KPMG confirm that the best prospects for the business is a sale as a going concern, thereby preserving as many jobs as possible.”

Some 81 redundancies have been made at the group’s head office in Welwyn Garden City and administrators said some store closures were likely. They are currently assessing the viability of each shop. 

First Quench has been owned by Vision Capital, an American private equity company, since 2007. Threshers was established in 1897 and later became part of the Whitbread group. It was merged with Victoria Wine 1998  before being bought by Nomura Principal Finance in 2003.

The failure of First Quench follows the administration of Runcorn-based Wine Cellar, which had 170 shops, last month. Some 109 stores have now been sold to a new owner.

Richard Fleming, head of restructuring at KPMG, said: “Trading in the off-licence sector has become increasingly competitive in recent years, with the recession proving too much of an additional burden in this case. 

“The business has a comprehensive geographic footprint, however, and we believe this presents a compelling opportunity to other retailers who may wish to extend their reach.  We will continue to trade the remaining business while we seek a buyer.”