Vinoteca rescued in £305,000 pre-pack deal

Vinoteca has been acquired out of administration in a pre-pack deal worth £305,000.

The wine bar concept’s business and assets have been sold to a subsidiary of private investment firm Breal Group.

Vinoteca, which had previously filed for protection from its creditors, had been advised by Interpath Advisory after its trading was hampered by the Pandemic and reduced customer levels.

Founded in 2005, Vinoteca currently operates five sites in London – at Borough Yards, Chiswick, Farringdon, Kings Cross, and Bloomberg Arcade.

Its first site outside the capital, in Birmingham’s Paradise Estate, closed in May of this year after less than a year of trading.

Three interested parties had submitted final bids for a takeover of Vinoteca, each offering pre-pack deals. One offer was for all five of the trading sites, while the other bids were for four sites and two sites respectively. After one bidder withdrew from the process, Breal’s offer was considered to provide the best outcome for shareholders of the remaining two.

As part of the deal, four of Vinoteca’s shareholders and senior management scheme will be offered 15% equity in the new venture.

Earlier this year, Breal Group purchased Yorkshire-based Black Sheep Brewery along with its shops and pubs, out of administration for £5.04m. It then acquired London-based Brick Brewery in a deal worth around £318,000.