300 jobs go as off-licence chain collapses
MORE than 300 jobs have been lost after North West off-licence chain Wine Cellar Ltd was placed into administration.
The Runcorn company, which also operates convenience stores, trades under the Booze Buster, Simply Drinks and Simply Food & Drinks, appointed insolvency experts from Deloitte in Manchester yesterday.
The majority of the family-owned company’s 170 stores have been sold, safeguarding 700 jobs, but 61 outlets will close, with 320 job losses.
The most recent accounts for the 12 months to January 2008 show the company’s turnover was £62.5m, while losses before tax were £956,000. The directors were listed as E Jebreel and D Jebreel.
In July the company, owned by the Jersey-based Cotil Investments, agreed to secure its borrowing from Barclays Bank against its assets and trade debts.
Bill Dawson, partner in the reorganisation services practice at Deloitte in the North West, said: “We are pleased to announce the sale of the majority of the Wine Cellar outlets The sale includes 109 stores, which will secure around 640 jobs at these outlets and around 60 staff from head office.
“The administrators are not in a position to continue trading the remaining 61 stores which have not been sold. These stores have been closed and unfortunately around 320 employees have been made redundant.
“The company has undertaken an extensive search to find an investor or buyer. It has become necessary to sell the business via an administration, due to its financial position.”
