Vagabond driven to brink by surging costs

WINE bar chain Vagabond is on the brink of administration after its costs soared and its best-performing site was forced to shut.

The company, which runs a string of upmarket wine bars in London and Birmingham, filed notice of its intent to appoint administrators yesterday, giving it 10 days of protection while bosses attempt to solve its problems.

It blamed rising costs over recent years, as well as debts left over from the pandemic and the temporary closure of its Heathrow Airport site. Vagabond is working with advisers at Quantuma to explore options, including a potential sale of the business. It is understood that a number of parties have expressed interest in the company.

Founded in 2010 by Stephen Finch, Vagabond’s bars operate a “pour your own” system, where guests can drink wines by the glass from dispensers that maintain a strict temperature, preserving them for as long as two weeks.

As well as operating bars, the company makes its own wine at an “urban winery” next to Battersea Power Station in London, where it uses grapes sourced from vineyards close to the capital.

Sales in its bars rose by 224pc to £7.4m over the year to March 2022 as customers returned with the easing of lockdown restrictions, while pretax losses narrowed from £1.8m in 2021 to £859,000.

The private equity firm Imbiba is listed as the only entity with significant control over the company at Companies House. Imbiba bought a minority stake in the company in 2018 in a £3.5m deal.

A spokesman for Vagabond Wines said: “All of our amazing Vagabond venues are open and trading, offering over 100 delicious wines by the glass, and there are no plans for this to change.

“The management team, the board and investors remain highly supportive at this time.”