Following a 30-minute hearing yesterday in the High Court (London) Oddbins Ltd and Oddbins Properties Ltd were put into administration. Lee Manning and Matthew Smith, partners at business advisory firm Deloitte, have been been appointed joint administrators for the two companies.

Oddbins was placed in administration on the basis of a pending sale of the business and the need to keep the business and its assets viable during this process. It was not put into administration as a going concern as it was insolvent both with respect to its cash flow and balance sheet.

“We have received a number of expressions of interest,” Lee Manning told decanter.com. “Some are interested in the whole portfolio, others in some of the shops, while others are just interested in the stock. I would say the number of expressions of interest is still in single figures but it is now approaching double.

“Some of the parties are in the wine trade, some outside. However, we haven’t received any offers yet. I expect this initial process to probably take at least another week before we start moving forward."

"We will continue to trade the company whilst seeking a sale as a going concern.  Employees will continue to be paid and will be fully briefed.”  

British Gas’ winding up order, which prompted Oddbins to seek protection from its creditors through administration, was dismissed at yesterday. It is understood that there were at least two other winding up orders served on the company. One from Pol Roger Ltd, owed £273,612, was withdrawn as they wanted Oddbins to survive.

The adminstration orders for both Oddbins Ltd and Oddbins Properties Ltd was formally agreed by Mr Justice Morgan sitting in Court 19, Royal Courts of Justice at 12.15pm today. The judge had, however, already indicated on the stroke of noon that he was prepared to sign the orders. The winding up petition presented by British Gas due to be heard on the 20th April was dismissed at the same time. British Gas were not present at the hearing.

Mr Justice Morgan was swiftly persuaded that Oddbins Ltd was both cash flow and balance sheet insolvent and that the business had to go either in administration or liquidation. Oddbins had been due to pay a bill of £1.5 million followed by one of £1.9 million. The judge quickly accepted that administration was the right course for Oddbins Ltd (the trading company) but toyed with the possibility of putting Oddbins Properties Ltd into liquidation. However, he was persuaded that this would make the administrators' job more difficult, more burdensome and would cost more, so he agreed on administration for both companies.The liquidators are expected to be Matthew David Smith and Lee Manning of Deloitte – more details soon.

Oddbins was placed in administration on the basis of a pending sale of the business and the need to keep the business and its assets viable during this process. It was not put into administration as a going concern.

There was a brief discussion of the debt of £17.5 million owed to Oddbins by Ex Cellar Investments Ltd. This was money lent by Oddbins "to buy itself" and it was described both by the judge and by counsel for Oddbins as "a whitewash procedure" and that the debt has been "whitewashed". It was accepted that the debt was "realistically worthless"as Ex Cellar Investments Ltd's sole asset is Oddbins.

It was agreed that notices and correspondence to creditors could be sent electronically.

HMRC refuse DVA. Oddbins into administration. Further details later.

Brief update:

Oddbins will go into administration on Monday if application is approved in High Court, London.

The potential administrator expects that the stores will continue to trade and the staff will be paid and hopes to sell company as going concern. We were told that two or three offers have been received.

Less good news for Oddbins staff who were made redundant. I suspect that the biggest hit, apart from staff made redundant, will be some of the suppliers, especially those in for large sums and who may also have been hit by Threshers and Unwins. There were some very glum faces leaving the CVA meeting this morning.

HMRC pulled plug at 4pm yesterday.

More details shortly.