WINE RETAILER ODDBINS is seeking administration just days before a vote on a Deloitte proposal for a company voluntary arrangement (CVA) is to take place.
Oddbins said the administration is “purely precautionary” and is being sought to stop any creditor claims against it for ten days, the Financial Times reports.
A CVA allows a company to repay creditors a percentage of debts owed, over a contracted period of time. However, for a CVA to be approved more than 75% of creditors, by value, must vote in its favour.
The vote is scheduled for 31 March.
Deloitte partners Lee Anthony Manning and David Smith were appointed CVA nominees to the company on 15 March. If it is approved they will become CVA supervisors.
As part of the CVA it is proposed 89 stores will pay 30% less rent and 39 shops will close with those landlords receiving five months rent.
The Deloitte partners estimate creditors will most likely receive 21p for every pound owed in a CVA, compared to 13.6p in an administration.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children