RECEIVERS have been called in at a Warrington off licence chain that employs more than 3,000 people around the country.

Increasing competition from supermarkets has been cited as one of the reasons behind the Loushers Lane-based Cellar 5 group's current woes.

But officials from receivers Grant Thornton are confident that the business, which has 435 off licences around the country, would remain in business if a buyer could be found.

Receiver Les Ross said: "The management has worked very hard to turn this business around.

"While they have demonstrated great skill in reducing costs and working capital, the dynamics of the market have worked against them."

He is hopeful that a business model can be found which would allow the off licences to co-exist with the supermarket giants.

Mr Ross added: "I am certain that Cellar 5 will provide an ideal opportunity for a competitor to pursue that consolidation and I am confident that we will achieve a sale as a going concern."

Cellar 5 was formed following the demise of Greenall Whitley in 1997 - the retail arm was sold off for £60 million.

Two years later the chain's off licences, which had until then retained the Cellar 5 and Berkeley Wines names, converted into Booze Buster or upmarket Wine Cellar outlets respectively.

Leading the 1997 buyout was Iranian-born entrepeneur Nader Haghighi, who also established the Parisa caf bar business, named after his young daughter.

Haghighi, a former Greenalls marketing director, left the company last year and the caf bar sector was sold off to the SFI Group, which created the Slug and Lettuce chain.

With Booze Buster and Wine Cellar branches across the town, Cellar 5 is estimated to employ dozens of people in Warrington.