Wine retailer Oddbins is the latest casualty of the economic downturn and has now had to call in the administrators.
Deloitte were called in try and sell the retailer so it can avoid going into receivership and ensure that all of the company’s 400 staff don’t lose their jobs.
Various other wine specialists have gone into administration in the last few years as they are faced with stiff competition from the supermarkets, including Threshers owner First Quench who collapsed in 2009.
The troubled company had proposed a Compulsory Voluntary Agreement (CVA), but one of the biggest creditors, HM Revenue and Customs who are owed £8million by the firm, opposed the idea.
If your company goes into liquidation, there are a variety of difference procedures depending on if the company has any assets.
If the company is solvent, you can go through a procedure of Members Voluntary Liquidation which involves an Insolvency Practitioner selling off any assets to pay debts and if there are any funds left over, it will be dispersed to members. Whereas if a company is insolvent, they must file a Creditors Voluntary Liquidation so that as many debtors as possible can be paid.
Whichever liquidation procedure a company follows, there is advice available to ensure you make the correct decision which can offer the best outcome for the situation.