Decanter World Wine AwardsOddbins hires consultancy to advise on options
- Wednesday 2 March 2011
Oddbins has taken on business analysts Spectrum Corporate Finance to advise on the way forward ‘in the current challenging retail environment’, managing director Simon Baile has told Decanter.com.
The chain was acquired by French group Castel in 2002, and for the next six years gradually lost its position as one of the most popular high street retailers in the country.
In 2008 its purchase by Baile, son of one of the original managing directors, was met with universal goodwill from the UK trade.
Since then Oddbins has been dogged by reports of supply-chain problems, staff discontent and wholesaler jitters about the firm’s credit-rating, although it reported healthy growth figures for the first quarter of 2010.
In a letter to Decanter.com Baile said, ‘Since we took over the company in 2008, the business has been transformed and during 2010 we saw our footfall increase significantly for the first time in many years, added to which we have seen strong growth in average spend and Oddbins average bottle price is now the highest of the high street multiples.
‘As the current retail environment continues to be challenging, we have recently engaged Spectrum Corporate Finance to advise us on strategic options.’
Have your say!
Jay
March 04 21:50
I have worked for wine rack for two years, and now have been at oddbins for seven years.So i've seen changes in my time.Now i'm not just saying this because I work for oddbins but how many wine shops or supermarkets can you go into and get advice on wine? not many. But in oddbins you can.The staff do like wine and are passionate about wine which is great.Since Baile and Young have been in charge I think it has been better in terms of the outlook of the shops and staff. Also some great staff at oddbins they need to look at having the brands people want to buy and ask managers what sells and what doesn't sell and look at what changes to be made in stock I hope for the best for oddbins good luck guys.
Tam Lampshade
March 03 23:10
The sombre final nail in Oddbins' coffin? As both an ex-employee and ex-customer, I find this news regrettable, however not at all surprising.
The 'Thresher-fication' of the nation's once favourite wine merchant has been plain to see since the current owners took the reigns; despite (often self-congratularoty) hype from within company walls, suggesting that everything is Rosé in the Garden of Eden.
The company was on its knees when Castel sold up, however however it still retained it's most valuable asset - the passionate, but long-suffering staff. Unfortunately one failure after another (pay freezes, shop closures, supply chain issues, tired product range, ineffective promotions etc) has led to many leaving to explore bigger and better things.
Perhaps if Baile & Young had been more open to advice from the shopfloor a few years ago, they would not be having discussions with "restructuring consultants" today?
jonathan mtchell
March 03 15:29
Oddbins problem is simple. It is grossly overpriced. I used to buy regularly, now only when there is an offer i like.