Sans Drinks, the Australian non-alcoholic drinks specialty store that went into voluntary administration in July, has been given a major lifeline, with the business and assets of the Company being sold to one of one of Australia’s leading online wine retailers, Just Wines.
In further news, following the second creditors’ meeting on 21 August, creditors resolved to accept the Deed of Company Arrangement (DOCA) proposal. “It means secured and employee creditors are likely to be paid in full, with unsecured creditors set to receive an estimated 48 cents in the dollar, all in the next three months.”
Voluntary administrator Andrew Spring, Partner with business turnaround and insolvency specialist Jirsch Sutherland, calls the result “a great example of the benefit of voluntary administration (VA) as a business rescue process”.
“The VA process moves quickly, which enables administrators to focus on the best solution to preserve value for creditors, which is the case with Sans Drinks,” he said. “As an independent party, an administrator can come in and assess the business and determine the best path out. It takes the pressure off the directors and gives the business the best chance of survival. With Sans Drinks, the VA has resulted in the strengthening of the business through a trade sale and provided for a significantly improved outcome for all creditors, as opposed to if the business had been liquidated.”
In line with the transaction Sans Drinks founder Irene Falcone will continue to participate in the business in marketing and strategy, in addition to continuing to nurture and build the Sans Drinks community. “That’s a real passion for me,” says Ms Falcone.
Just Wines founder Nitesh Bhatia says Sans Drinks is an excellent addition to the Just Wines platform. “There are great synergies between the two brands and we’re looking forward to working with Irene to take Sans Drinks to the next level,” Mr Bhatia said. “This is a great fit: Irene has vast experience in marketing and promotion, and Just Wines has a strong track record in administration, operations, and managing the supply chain. And as the non-alcoholic sector is a real growth area, this will enable Sans Drinks, which is already the number one retailer in this segment, to grow at a much faster pace. We’re looking forward to advising the customers of both brands about this exciting development.”
Ms Falcone added, “The decision to enter into the VA was a difficult one, and I’m incredibly grateful to the team at Jirsch Sutherland, who really guided me every step of the way. I’m thrilled that Sans Drinks is part of the Just Wines family and I’m looking forward to the next chapter for Sans Drinks.”