The move leaves Ehrmanns’ management team free to focus on developing the business rather than servicing its debt, according to managing director Mark Chapman.
“The removal of the bank debt will provide a much more stable financial platform for our customers and supply partners, and will allow greater flexibility to develop our long-term plans for the business,” he said.
All on-going creditors will be paid in full and the new company will continue to work with its existing supply base, added chairman Peter Dauthieu.
“The Ehrmanns board has been looking for the best way to secure the future of the business, resolve the issues with the bank and put us into a position where we can take advantage of the opportunities that are now arising in the fast changing supply side of the UK wine market,” he said.
In the short-term Ehrmanns will continue to trade under the same name, although work is underway to create a new identity for the company.