Oddbins plans to pay creditors 20p in the pound
The scale of Oddbins debts emerged last week as a roll call of creditors were revealed. A huge number of wine companies, utility companies, law firms and individuals are owed money with the largest creditor being HM Revenue and Customs who are owed over £8.6m.
Creditors will now vote on whether to accept the companies Company Voluntary Arrangement proposal that will see them being paid around
£0.20 in the pound. Realistically should Oddbins go into administration, those owed money could see as little as £0.13p. A 75% approval rate is required to avoid administration and much will rest on the vote of HMRC.
Many of the creditors are still rallying around Oddbins though, as they are keen to see them survive. But many agreed a change of strategy is vital if they are going to survive in a changing marketplace. One commented that you can't run a modern wine retail business full of wines that no one has heard of. The creditors meeting takes place on 31st March.