Oddbins saved? Old owner in 'advanced talks' to rescue shop and re-open stores

A new deal could pull Oddbins out of administration - saving hundreds of jobs and seeing shops re-open.

The wine retailer has been in administration since February, after owner European Food Brokers appointed Duff & Phelps as administrators to try and find a buyer.

Now the Press Association understands advanced talks are taking place between Raj Chatta and insolvency firm Duff & Phelps over a deal to rescue the firm's remaining stores.

The company has continued to trade since the business first entered administration in February as a buyer was sought, but it is understood that 13 Oddbins branches have shut their doors.

A deal to secure the future of the business will also mean a number of its old locations could be sold to help stabilise its financial future.

Talks are taking place between the former owner of Oddbins and administrators to save the troubled wine retailer and secure the future of hundreds of workers (PA)

In February joint administrator Phil Duffy said: "The continued decline in consumer spending, pointing to a squeeze on household finances, combined with rising living and national wages have put increased pressure on retailers' bottom lines.

"As wages struggle to keep up with the pace of inflation, and continued, deepening unease and uncertainty over Brexit , means consumers are cutting back on spending.

"Add into that mix rising business rates and rents, and traditional bricks-and-mortar retailers are undoubtedly feeling the strain."

The companies which have gone into administration trade under a number of names including Oddbins, Oddies, Simply Drinks, Simply Food & Drinks, Shop2Go and Booze Buster.

The parent group and its drinks distribution business did not enter administration.

Oddbins was founded by Ahmed Pochee in London in 1963, after starting the firm by delivering wine to clubs and restaurants in the capital.

Oddbins has about 45 stores, while other brands including Wine Cellar Trading and Whittalls Wines Merchants are also affected.

Overall, European Food Brokers has about 550 staff and runs 101 off-licences, but did not confirm exactly how many Oddbins' shops and staff were affected.

Oddbins last went into administration in 2011 after HM Revenue & Customs said it would not support a deal with its creditors.

European Food Brokers bought some of the Oddbins stores at the time using its Whittalls subsidiary.

Duff & Phelps declined to comment. European Food Brokers did not respond to requests for comment.