Oddbins to dump a third of off-licences

Oddbins is to close almost a third of its off-licences in the next few weeks.

The chain is cutting its estate from 128 stores to 89 after calling in Spectrum Corporate Finance last week to review its strategy and find outside investors.

"Due to the tough economic climate, the business is being restructured, with the result that 39 branches across the UK will be closed over the coming weeks," the company said.

Oddbins is 22nd in The Grocer's Top 50 ranking of independent grocery retailers. Its £4.6m loss is the worst experienced by any company in the Top 50.

"Retailers that depend on volume and being price-competitive are really struggling," said Verdict Research senior analyst Matt Piner. "They have nowhere to go in the market. It's too difficult for Oddbins to reinvent itself as a Majestic-type premium offering and now it's losing this scale, it will lose buying power too."