Administrator cuts 100 jobs at North off-licence group.

MORE than 100 jobs have been cut in the North East by administrators of the Wine Cellar off-licence and convenience store group.

A total of 320 staff working in Booze Buster, Simply Drinks and Simply Food & Drinks stores will be cut by administrator Deloitte.

The family-owned group had 170 stores but Deloitte said 109 have been sold to EFB Retail, preserving 640 jobs at these outlets and around 60 staff in its Runcorn head office. The remaining 61 stores will close.

These are mainly in the North of England with 22 sites shutting in the North East in Stockton, Hartlepool, Newcastle, Tynemouth, Darlington, South Shields, North Shields, Rowlands Gill, Ashington, Hexham and Bedlington. Its Carlisle store will also close.

Deloitte partner Bill Dawson said: "The company has undertaken an extensive search to find an investor or buyer. It has become necessary to sell the business via an administration, due to its financial position."

EFB Retail is a subsidiary of Walsall-based drink wholesaler European Food Brokers, which is owned by Rajinder Chatha. Mr Chatha, who also owns the Whittalls Wines chain, is worth an estimated pounds 50m.

The latest accounts available for the Wine Cellar group showed pre-tax losses of almost pounds 1m in the year to January 27 last year, on sales of pounds 62.6m. Despite the losses, the accounts said the group "continued to buck the trend of a challenging retail alcohol market".

It said the credit crunch and the smoking ban had encouraged drinking at home, while its move into convenience stores through the Simply Food & Drink stores had driven local custom.

"The directors are confident of continued improvements in trading ."