Crash puts off-licence jobs at risk

Thousands of off-licence jobs were today at risk after the parent company of Threshers and Wine Rack, which has dozens of branches in the Black Country and Staffordshire, went into administration.

First Quench Retailing, the owner of the high street chains, today confirmed the appointment of KPMG as administrator but said it hoped to preserve "as many jobs as possible" by securing a sale as a going concern.

It is believed that fierce competition from budget chains and supermarkets offering cheap drink offers has led to the company being put into administration.

The chains have long been a fixture on high streets in the region, and there are six branches in Wolverhampton, including on the busy Penn Road and Bridgnorth Road.

There are also branches in Walsall, Stourbridge, Wollaston, Shifnal, Burntwood and Stafford.

Administrators said the business, which employs 6,500 people including 3,000 full-time workers, would operate as normal while it sought a sale and that staff wages would be paid next week as planned.

First Quench operates a total of 1,300 outlets and also owns convenience store chains The Local and Haddows.

It has struggled amid fierce competition for drink sales from superstores. News of the group's administration leaked last night before staff were informed.

First Quench said: "It is with great regret that the board was not able to brief our colleagues prior to it being made public in the media.

"This was always our intention but, unfortunately, the news leaked.

"There is a full programme of communication which will commence from Friday morning to our colleagues."

It is understood to have been looking at various options for the business in an attempt to stave off administration, including trying to find a buyer.

At the beginning of the year, First Quench warned that some of its branches would close if it was unable to renegotiate rents with landlords. A turnaround plan was put in place, including cost savings, the closure of loss-making stores and the cutting of stock.

First Quench is already said to have warned over its ability to continue as a going concern after the business was hit by declining demand and the withdrawal of credit insurance.

Fellow retailer Blacks Leisure is also facing a survival battle today as a debt repayment deadline looms.

The outdoor chain said first-half losses had almost trebled, and it is scrambling to secure a debt restructuring plan for lender Lloyds Banking Group.