Conviviality to collapse
Bargain Booze owner Conviviality this morning confirmed it is likely to fall into administration putting 2,600 jobs at risk.
The company, which has had a series of profit warnings, is on the verge of collapse following an accounting error in its books and an unpaid £30m tax bill.
Earlier this month, Conviviality chief executive quit and the business brought in PwC to conduct a review of the business.
The company was looking to raise £125m in emergency funding but failed to do so.
In a statement Conviviality said: “Following discussions with its lending banks, the Board has resolved to file notice of intention to appoint administrators to the Company. 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.
“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.
“Further announcements will be made as appropriate.”