Partner Article

Off-licence firm faces closure

Scores of off-licence workers across the North East are facing an uncertain future after First Quench Retailing went into administration.

The company, which owns Thresher, Wine Rack and The Local, with dozens of stores throughout the North East, said it hoped to preserve “as many jobs as possible” by securing a sale as a going concern.

The business will operate as normal while adminstrator KPMG seeks to secure a sale, and staff wages will be paid next week as planned, according to the firm.

First Quench employs a total of 6,500 staff, including 3,000 full-time workers.

The group said it was unable to warn staff before news leaked of KPMG’s appointment.

First Quench said in a statement: “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, which has 1,300 outlets, warned that some of its stores 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 shops and cutting stock.

This was posted in Bdaily's Members' News section by Ruth Mitchell .