Thu, 29 Mar 2018 | ADMINISTRATION
The firm that owns several discount alcohol shops – including Bargain Booze and Wine Rack – has announced that it will file for administration in the next two weeks, after dwindling revenues have put it in a precarious position.
Conviviality, which also supplies alcohol to more than 25,000 restaurants, hotels and bars, had already issued profit warnings in recent weeks and revealed that it had an outstanding £30 million tax bill due to HMRC by the end of the month.
Not long later, the company slashed its earnings forecast for the year from £70 million to £55 million.
These troubles also led to the resignation of chief executive Diana Hunter, at the head of the firm since 2013 when Conviviality listed on the London Stock Exchange.
The firm since said it will seek to raise £125 million from a placing of new shares, but announced this week that efforts to raise the extra cash were unsuccessful despite widespread support from the industry. Companies such as brewing giant AB InBev encouraged its own shareholders to back the fundraising, underlining the firm’s importance as a distribution channel.
Conviviality supplies drinks to more than 700 off licenses around the country, alongside 23,000 pubs and restaurants, employing more than 2,600 people to do so. All employees’ jobs are thought to be at risk.
Reports from inside the industry suggest that Conviviality will announce that PricewaterhouseCoopers has been appointed as administrator some time this week.
The alcohol supplier joins a long list of British retail firms going into administration, after the collapse earlier this year of Toys R Us UK and Maplin.
The company offers a well-regarded own brand of hair care products focusing on hair growth and repair, featuring premium formulas that are natural, vegan, and cruelty-free. With a strong global presence and prestigious industry awards, the business h...
This business offers a cutting-edge process safety management platform with proprietary software that ensures proactive safety measures for both onshore and offshore assets. With a strong foothold in the oil and gas sector and recent expansion into i...
This business offers a comprehensive range of road surfacing and civil engineering services, supported by significant investments in state-of-the-art equipment and a recently acquired operational site in Scotland to optimise efficiencies. With robust...
03
|
Jul
|
Energy services firm completes third acquisition | BUSINESS SALE
Energy services firm Earnz plc has completed its third acqui...
03
|
Jul
|
Newcastle life sciences firm falls into administration and ceases trading | ADMINISTRATION
AMLo Biosciences, a life sciences firm based in Newcastle, h...
03
|
Jul
|
Matthew Freud exploring possible sale of eponymous PR consultancy | BUSINESS SALE
Leading public relations executive Matthew Freud (pictured) ...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.