It happened when Oddbins went under in 2011, and now it has happened again with the recent collapse of D&D Wines International into administration, leaving unsecured creditors, mostly for wine supplied, exceeding £10m. Prospects of any significant recovery look slim, albeit that Liquidators have now been appointed to investigate how a company could go from a balance sheet of £2.2m (including cash of £3.8m) at the end of 2010 to a deficit of £6.5m in 16 months.
From our own experience, and from talking to insolvency practitioners involved in recent wine importer collapses, it is quite staggering how unprotected and exposed many wine producers are in these cases. The absence of any – let alone sufficient – contractual protection or security, even something as elementary as Retention of Tile, seems to be the norm, not the exception. This is an issue that every wine producer who exports to the UK and uses an independent importer needs to consider and address urgently. Here’s how we can help:
Our Free Guide on “How to make sure you get paid” reviews the various options available. Please get in touch if you would like a copy, or would like us to review your existing distribution arrangements and advise on how you can improve your protection.