Oddbins is restructuring its operations into three specialist retail divisions - high-street, large retail units and suburban - in a bid to return the former darling of the independent wine trade to profit.

After a year in which 40 stores were sold, with a further 21 still up for disposal, and 50 Oddbins shops rebranded as Nicolas (its Castel-owned sister company), the restructure abandons the former regional approach to focus on sales and marketing by format to reflect consumer shopping patterns.

Former northern sales manager Simon Mason will be head of sales for the 66 remaining high-street stores; southern sales manager Duncan Holburn will head sales at the 47 bulk sales and large retail unit branches; and Paul Manly will be head of sales operations for the 51 suburban branches. A fourth sales and marketing operation under Philippe Scodellaro will handle the 82 high-street stores of Nicolas.

In a frank admission of the failings of Oddbins since its acquisition by Castel in 2002, Oddbins HR director Ayo Akintola said Oddbins and its privately owned parent company had not responded quickly enough to the changing retail landscape. "We won a lot of awards over the years and were too busy patting ourselves on the back to see how much the supermarkets were improving their ranges."

Oddbins deputy MD Eudes Morgan explained: "Oddbins built its reputation finding New World wines. Today New World wine is everywhere and specificity has been lost. Of course, we tried, with Greek wine and so on, but there was no point of difference."

But the troubles of the chain were not all self-inflicted, added Morgan. Vital traffic generated by tobacco sales had been lost overnight by the rollout of convenience-format stores by Tesco and Sainsbury's. And "horrible" high street rent rises could turn a profitable store into an unsustainable one overnight.

As a result, the management had focused in 2007 on disposing of or rebranding all loss-making Oddbins. But Morgan denied Gallic imperialism would lead all Oddbins to become Nicolas stores. "It's a question of profitability. In Crouch End, Marylebone and Blackheath, both have been doing well on the same high street.

"But in West Hampstead and Kings Road we closed the Nicolas stores because they were losing money, while the Oddbins stores there are open because they are doing well. We look at the demographics and spending patterns."

As well as different ranging for the four divisions, Morgan also revealed plans to provide more exclusive wines in smaller parcels. And in further signs of a return to its roots, he promised more refreshing, funny, artistic marketing.

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