G101, the off-licence chain owned by George King, the father of nightclub entrepreneur Stefan King, has fallen to a loss.
The company appears to be the victim of sustained competition from super- markets that have been accused of using cut-price alcohol as loss-leaders to attract customers.
G101, whose website says it has 47 off-licence and convenience stores in and around Glasgow, made a pre-tax loss of £657 last year compared to a profit of £452,261 the year before.
As recently as 2002 it was generating annual profits of £1.6m. Its other interests include warehousing, storage and distribution and a bonded warehouse.
G101's latest set of accounts for the year to May 31, 2008, reveal that its turnover fell 2.4% to £33.9m.
This was despite making sales of more than £3m to Stefan King's restaurant, bar and nightclub empire G1 Group G1's interests range from the bars, clubs and restaurants in the Corinthian in Glasgow's Merchant City to the four-star Palm Court hotel in Aberdeen.
G101 also rented properties and bought goods from Burnfield Trading Company which is controlled by George King's wife Cynthia.
The accounts show that G101 employed 371 people over the period, up from 360 the year before.
The three directors of the company received emoluments of £41,934. There was also a dividend pay-out of 286p a share, totalling £200,200.
King, who turns 71 on Sunday, has denied taking dividends from the business in recent years. However, information at Companies House shows he owns 69,999 of the company's 70,000 shares. The remainder is in the hands of his wife.
A self-administered pension fund charged G101 £272,452 in rent. G101 also advanced £284,187 to the fund.
As well as continued competition from supermarkets, the off-trade also faces the challenge of a slowing economy hitting discretionary spending although drinks companies maintain that "affordable luxuries" will be relatively untouched.
Also looming over the sector is the Scottish Government's intent to crack down on binge drinking. It has proposed setting minimum prices for alcohol and preventing under-21s from buying drink to take away although they will still be served in pubs.
The Herald was told by G101 there was no-one available to comment.
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