More than 1,700 workers are to lose their jobs after administrators for First Quench, parent company of the Threshers off-licence chain, announced the closure of 373 stores.

First Quench, which also trades as Wine Rack, The Local, Haddows, Bottoms Up and Victoria Wine, fell into administration last month after struggling amid the recession.

Today’s announcement will result in 1,738 redundancies, according to KPMG, the administrator, which is seeking to sell the company as a going concern.

KPMG said 247 of the First Quench stores being closed will trade until November 25, while a further 126 are to stay open until December 2.

Richard Fleming, UK head of restructuring at KPMG and joint administrator, said: “Unfortunately, after reviewing the viability of the store network, 373 loss-making stores are to be closed.

“As part of the closure programme, liquidation sales will take place at each of the stores scheduled to be closed with the stock being sold off at a discount from Friday November 6.”

First Quench operates about 1,200 stores across Scotland, England and Wales under its various brands and employs approximately 6,300 people, 3,000 of them full time.

Mr Fleming said the group’s remaining stores will stay open and trade as normal while administrators search for a buyer.

“So far, we have received considerable interest in the business from a range of buyers, including trade, individual investors and private equity,” he said.

“The remaining stores are trading well and we believe they present an attractive investment. We are confident of securing a sale in the coming weeks.”

First Quench has been hit by cut-price supermarket competition. The company lost £1.7 million before tax in the year to June 28, 2008, the latest for which figures are available, on a turnover of £687 million.

The recession has added to long-running difficulties for off-licences. Earlier this year Wine Cellar, which had 170 shops around the country, fell into administration, although 109 shops were sold to a new owner.