Troubled drinks wholesaler Conviviality plc set for administration

Drinks wholesaler Conviviality plc is set to appoint administrators.

The Crewe-based company’s board confirmed the move in a statement this morning (March 29).

The notice follows yesterday’s announcement that the firm has failed to raise the £125m needed to recapitalise the business, after an error in its forecasts meant it faced an unexpected tax bill of £30m.

Conviviality, which owns the Bargain Booze chain of off licences, said: “Following discussions with [our] 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 statement further outlined how Conviviality’s directors intend to allow the business to continue trading. They will work alongside advisers in order to “preserve as much value as possible for all stakeholders” as the company continues to explore “a number of inbound enquiries regarding a potential sale of all or parts of the business”.