UPDATE 2-Majestic Wine sees boost from First Quench woes

Mon Nov 16, 2009 10:46am GMT
 
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* Administration of First Quench seen beneficial

* H1 pretax profit 6.1 mln stg, up 9 pct

* H1 UK lfl sales up 5.4 pct, 5 weeks to Nov. 2 up 6 pct

* Says 6-bottle strategy has made "encouraging" start

* Shares up 3.3 percent (Adds further detail, comments by CEO, analyst; shares)

By James Davey

LONDON, Nov 16 (Reuters) - Britain's largest wine warehouse chain Majestic Wine (MJW.L) said it would get a boost from First Quench Retailing's fall into administration as it posted a 9 percent rise in first-half profit and robust current trading.

KPMG, administrators to First Quench, which runs off-licence chains Threshers, Wine Rack, Victoria Wine, Bottoms Up and Haddows, are closing 373 stores by Dec. 2 and looking for buyers for about 830 more. [ID:nLT732472] [ID:nN05429445]

"They are a direct competitor, in particular Wine Rack, the more upmarket end of the First Quench operation ... Clearly the removal of capacity from the high street has to have a beneficial effect for us," Chief Executive Steve Lewis told Reuters on Monday.  Continued...

 

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