Bargain Booze owner Conviviality confirms it will be filing for administration putting thousands of jobs at risk
Conviviality has confirmed it will be filing for administration after failing to secure emergency funding, and intends to appoint administrators within 10 business days.
Some 2,500 people work across Conviviality’s brands which include Matthew Clark, Bibendum, Catalyst, Bargain Booze, and Wine Rack.
In a statement this morning it 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.
Read more: Drinks giant AB InBev urges shareholders to support Conviviality
The company has been under pressure after it found an accounting error in its books and then discovered an unpaid £30m tax bill.
Earlier this month, the drinks distributor’s chief executive stepped down after a string of profit warnings.
Conviviality brought in PwC to consult on a review of the business in a bid to raise funds after the company discovered the £30m tax bill.
It had been looking to raise £125m which the directors had assessed was the minimum amount required to “adequately recapitalise” the business.
Despite a number of meetings with potential investors and what Conviviality was solid demand, there was ultimately insufficient interest to raise the full amount needed, it confirmed yesterday.
It had said it was in discussions with both lending banks and advisors about its next steps, having received queries about a potential sale of all or parts of the business.
The board said shareholders in the firm will receive “little-to-nil value”.
Today, Conviviality said: “The directors intend to allow the business to continue to trade and the company continues to work alongside advisers in order to preserve as much value as possible for all stakeholders as it explores a number of inbound enquiries regarding a potential sale of all or parts of the business.”
Shares have been suspended pending further notice.
Read more: Conviviality’s chief executive steps down after series of profit warnings