Bargain Booze owner Conviviality to file for administration

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.


Share this article



Latest Businesses for Sale

Natural Stone Supply Company: Sourcing/Processing/Distribution
Aberdeenshire, Scotland, UK

This company specialises in supplying the highest quality natural stone products, offering a complete turnkey solution to its customers from sourcing, through to processing, design and final distribution and delivery. Offers invited.

Asking Price: £1,050,000
Turnover: £1,100,000

RELOCATABLE


Precision Engineering Business
North West, UK

Precision Engineering Business for sale operating with a modern, well equipped machine shop, offering Engineering Development Modelling (EDM), CNC turning & milling, grinding, boring and fitting. Offers invited.

Asking Price: Offers Invited
Turnover: £400,000

LEASEHOLD


Accountancy Business
UK Wide

High quality practice with strong middle management on the market for the first time. Established: 25 to 30 years. Strong middle-tier management to support acquirer throughout the transition period and on an ongoing basis. Locations: Cheshire, Mersey...

Asking Price: £1,300,000
Turnover: £1,300,000


View more businesses for sale

News Search

Latest News

 
20
 
Sep
 

Thomas Cook seeking 'last-ditch' fire sale | BUSINESS SALE

Thomas Cook Group is reportedly trying to piece together a l...

 
19
 
Sep
 

Smith & Williamson and Tilney to merge | MERGER

After revealing in August this year that talks were in place...

 
18
 
Sep
 

Infrastructure investment manager takes stake in LJLA | BUSINESS SALE

Infrastructure investment management group, Ancala Partners,...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
20
 
Mar
 

Carpetright 'could close stores' amid insolvency concerns | BUSINESS NEWS

High street carpet giant Carpetright has revealed it could c...

 
08
 
Mar
 

Off-licence retailer Conviviality officially falls into administration | ADMINISTRATION

After issuing a profit warning in March of this year, off-li...

 
01
 
Nov
 

Bargain Booze owner sees results from acquisition hat-trick | BUSINESS NEWS

Conviviality PLC, the independent drinks wholesaling group w...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources