North East jobs under threat at Threshers and Wine Rack

Oct 31 2009 by Iain Laing, The Journal

MORE than 170 North East staff of Threshers and Wine Rack are concerned for their jobs after the off licence chain’s administrators warned of store closures and job losses.

KPMG has already made 81 redundancies at the firm’s head office in Welwyn Garden City and said it was likely further jobs would face the axe among the remaining 6,283-strong workforce.

“Unfortunately it is likely that some store closures and further redundancies will be made. Once the administrators have assessed the viability of each store, a further communication will be announced,” said a spokesmand for KPMG. First Quench operates 1,202 outlets under the Threshers and Wine Rack brands, as well as Bottoms Up, Victoria Wine and local convenience store chains The Local and Haddows. There are 29 North East stores employing approximately 173 people.

The chain includes another 86 stores nationwide – employing an estimated 430 staff – that are run as franchises and have not been placed in administration, as they are separate businesses owned by their management.

KPMG confirmed none of the First Quench stores had closed yet and said it was running the business as a going concern in the hope of securing a buyer.

Threshers – founded in 1897 – was placed in administration late on Thursday after struggling amid fierce competition for drink sales from superstores. Richard Fleming, joint administrator and UK head of restructuring at KPMG, said: “Trading in the off licence sector has become increasingly competitive in recent years, with the recession proving too much of an additional burden in this case.

“The business has a comprehensive geographic footprint, however, and we believe this presents a compelling opportunity to other retailers who may wish to extend their reach. We will continue to trade the remaining business while we seek a buyer.”