Tindal Wine Merchants is due to take over the wholesale business of its competitor, Searson's Wine Merchants.
According to The Sunday Business Post, Tindal is expected to spend around €1 million taking over the wholesale side of Searsons's business. It will not be buying the company behind Searson's but will be taking on some Searson's staff. It has also bought the lease on Searson's shop but Charles Searson will continue to operate from the premises for the time being.
Searson's has been struggling of late and has had difficulty maintaining continuity of supply. It is planning a wind down of its affairs in the near future. The company accounts show a loss of €134,672 to the end of June 2013 compared to a profit of €30,307 at the end of June 2012.
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Speaking to the paper, Charles Searson said the deal is "great news for the wine trade because instead of Searson's being snapped up by someone anonymous, they will be absorbed into another independent wine firm with a similar philosophy." He added that, "It provides a future for the Searson's brand."
The deal comes amid a challenging time in the wine industry, which industry experts are blaming on the increase in excise in the last two budgets.