Slurp sold after going into administration

(Decanter) - Online wine retailer Slurp has been bought by family wine merchant SH Jones after a lack of cash forced it into administration.

SH Jones has acquired Slurp's assets for an undisclosed fee, marrying its three high street shops and one cellar store with a stronger online presence, covering the UK and also Asia.

Jeremy Howard, Slurp's MD, told Decanter.com the business had gone into administration prior to the deal.

Despite 'dramatic sales growth' between 2009 and 2013, Slurp failed to turn a consistent profit and rapid expansion proved a 'big drain on cash', said Howard, who said he often dug into his own pocket to keep the firm afloat.

A failed search for outside investment earlier this year precipitated the crash. 'In spring this year, we had a deal agreed. Then, at the last minute, after everything had been signed and sealed, we learned that the venture capitalist firm had decided not to proceed,' Howard said. 'It was extremely disappointing, having done so much work.'

But he believes Slurp can prosper under SH Jones. 'There's an opportunity to increase margins through [SH Jones' access to] ex cellar wines,' he said.

SH Jones commercial manager Greg Shaw told Decanter.com he moved for Slurp after its administrators sent out letters alerting potential buyers.