WaverleyTBS ceases trading with immediate effect

A WaverleyTBS area manager told PMA sister title M&C Report at 3.15pm on Monday 8 October that he had just been told via conference call that the company had been liquidated.
 
“We’ve been working for the administrators since they arrived last week, but they failed to find a buyer.
 
“They’re keeping on 90 staff in the short term to wind things down and send our redundancy packs.”
 
 A number of interested parties, such as Matthew Clark, Ooberstock and Booker, stepped back from a sales process for the group over doubts about how much of the business is still saveable and of value.
 
Booker is understood to have made a bid for the group but pulled out at the 11th hour, leading to backer Manfield Partners calling in administrators Deloitte.
 
Suppliers including Diageo, Heineken and AB InBev had already recovered stock, while customers such as Mitchells & Butlers, Enterprise Inns and Greene King took measures to ease supply difficulties for managers and tenants.
 
Both Ooberstock and Booker have reached out to Waverley’s customers offering their services as replacement suppliers.
 
Earlier this week, The Times reported that Waverley had a credit shortfall of £14m and was pushed over the edge after a fall in revenues, caused by the poor summer weather.
 
At the same time, some of its biggest drinks suppliers had cut their credit terms, reportedly moving from 60-day payment terms to either 28 or 42 days.
 
Manfield Partners said it had worked closely with the management team and employees to improve trading conditions but that “unfortunately WaverleyTBS increasingly had to contend with very tough trading conditions in the UK on-trade”.
 
Waverley will continue to operate with a reduced workforce of 97 employees, while the administrators begin to realise value from the assets of the business. As a result, 685 employees have today been made redundant.

Daniel Butters, joint administrator and restructuring services partner at Deloitte, said: “Regrettably, despite our continued efforts, we have been unable to identify a suitable buyer for the business.  Whilst we will continue to consider offers for the sale of the business as a going concern, we will now focus on realising value from the company’s assets.
 
“Unfortunately, it has been necessary to make 685 redundancies at Waverley's sites across the UK. We will retain a core team of 97 employees to assist us in realising value from the company’s assets.
 
“We are extremely grateful to the staff and management for their support throughout this difficult time.  We would also like to thank the Job Centre and Insolvency Service for their cooperation and help.”