Bargain Booze firm Conviviality close to administration

Bargain Booze firm Conviviality close to administration

Conviviality, the owner of Bargain Booze, has announced plans to file for administration within two weeks.

The firm also owns Wine Rack and supplies more than 25,000 restaurants, hotels and bars.

It has issued profit warnings in recent weeks and revealed a £30m tax bill. The company sought £125m from investors but said it had been unable to raise those funds.

Conviviality employs about 2,500 staff and their jobs are now in jeopardy.

Earlier this month, the company slashed its profit forecast for this year to £55m from £70m.

Just days after that profit warning, it revealed a £30m tax bill that had to be paid by the end of the month.

Since then Conviviality has been trying to raise £125m to keep the business going, but on Wednesday it revealed those attempts had failed.

In its latest update, the company said: “Unless circumstances change, and in accordance with statutory requirements, the Board intend to appoint administrators within 10 business days.

“The secured creditors can, however, appoint administrators without the requirement for notice.”

Conviviality said it would continue to trade was exploring “a number of inbound enquiries regarding a potential sale of all or parts of the business”.

Source: BBC News

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