Winebuyers Group Ltd (13252255): administration
- Status
- Administration ended
- Administration began
- 2023-07-13
- Administrators
- Paul Robert Appleton, Stephen Mark Katz
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2021-03-08
- Location
- London
- Industry
- 47250 Retail sale of beverages in specialised stores
Why it went into administration
- Sustained trading losses
- Brexit
- COVID-19
- Weak consumer demand
- Rising costs / inflation
- Supply chain disruption
- Competition / price pressure
- Creditor pressure / legal action
- Property / lease costs
- Weather / natural events
From the administrators' statement
The Company operated as an exclusive online wine club with a simple mission: to bring wine into the 21st century. The Company aimed to do this by connecting producers and specialist merchants directly to wine lovers. Becoming a member provided customers with access to over 50,000 products across 40 different countries, with the business generating all of its revenue from a commission-based business model with commission achieved on every sale made.
Since it commenced trading the Company has experienced numerous difficulties, with revenue for the previous 12 months prior to the administration dropping to £30,000, following the failure of the Company's four largest suppliers as a knock-on effect of the global Covid 19 pandemic.
With such a reduction in revenue, the Company sought to lower operating costs where possible, reducing staffing levels from fourteen full time employees to just one full time employee as at the date of the Administration.
Administrators' statement of proposals (2023-09-09) · Companies House register