Threshers owner First Quench Retailing collapsed into administration last night following months of speculation over the future of the company.

Administrator KPMG said it was looking to sell the company, which also owns The Local, Wine Rack and Haddows, as a going concern, to save around 6,500 jobs. All 1,300 stores will remain open. Staff were only informed of the situation this morning.

First Quench said in a statement: “The board of FQR confirms that it has appointed KPMG as administrator. The board’s discussions with KPMG confirm that the best prospect for the business is a sale as a going concern, thereby preserving as many jobs as possible.

“It is with great regret that the board was not able to brief our colleagues prior to it being made public.”

The company this week admitted for the first time that it was considering “restructuring” the business as a result of the difficult trading environment. It made a pre-tax loss of £30m in the year ending December 2008, leading auditors to raise doubts about its ability to continue as a going concern.

First Quench is the second off-licence chain to fall into administration this month. More than 100 stores owned by Wine Cellar were sold to EFB Retail after the independent chain went into administration at the beginning of the October.

Healy quits First Quench as Van de Steen takes reins (6/10/09)
Can off- licences fight back? (analysis; 15/8/09)
First Quench unveils plan to return to profit (1/8/09)


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