Bargain Booze owner Conviviality plans to appoint administrators within the next 10 days “unless circumstances change”, putting 2,600 jobs at risk.

Bargain Booze owner Conviviality plans to appoint administrators within the next 10 days “unless circumstances change”, putting 2,600 jobs at risk.

The company said on Thursday that it will continue trading over that period in the hope of preserving “as much value as possible” for its stakeholders.

It will keep working alongside advisers and said it is exploring “a number of inbound inquiries regarding a potential sale of all or parts of the business”. The company is understood to be lining up PwC to lead the process.

The move puts thousands of jobs at risk, as Conviviality employs over 2,639 people and has more than 700 retail stores trading primarily as Bargain Booze, Select Convenience and Wine Rack. “Following discussions with its lending banks, the board has resolved to file notice of intention to appoint administrators to the company,” Conviviality said in a market announcement.

Toys R Us have filed for administration in a nightmare quarter for the retail sector (Yui Mok/PA) “Unless circumstances change, and in accordance with statutory requirements, the board intend to appoint administrators within 10 business days.” Shares have been suspended since Conviviality disclosed the discovery of its tax bill, which created what it called a “short-term funding requirement”.

It follows a torrid month for the firm, which saw its chief executive Dianna Hunter step down after issuing a string of profit warnings and revealing a £30 million tax bill. Conviviality was forced to go cap-in-hand to investors to raise £125 million as a result, but has been unable to convince them of its long-term future.

Ms Hunter, a former Waitrose director who had been chief executive since 2013, led the group through its stock market flotation in the same year, and oversaw a number of acquisitions, including Wine Rack, Matthew Clark and Bibendum.

“As we found with Palmer & Harvey’s rapid demise in late 2017, a default of this nature can have considerable short-term implications for supply chains, both those set not to be paid or those that seek to fill the void by the disruption to supplies that the current kerfuffle causes,” Shore Capital analysts Phil Carroll and Clive Black said.

Private equity firms could be ready to snap up the entire business with an eye on a few “selective disposals,” although the big four supermarkets and companies like CostCutter and Spar may also emerge as suitors, Mr Caroll and Mr Black explained. Its Matthew Clarke and Bibendum assets are positioned to attract big brewers, they added. The company’s collapse would cap a nightmare quarter for the retail sector.

Since January, Toys R Us and Maplin have filed for administration, while fashion retailers such as New Look and Select have embarked on radical store closure programmes. Piling on the misery has been the under-pressure casual dining sector, with Prezzo, Byron and Jamie’s Italian all shutting restaurants and culling hundreds of jobs. </s> Bargain Booze owner Conviviality has said it intends to appoint administrators within the next 10 business days "unless circumstances change", putting 2,500 jobs at risk.

The company's collapse would cap a nightmare quarter for the retail sector.

Since January, Toys R Us and Maplin have filed for administration, while fashion retailers such as New Look and Select have embarked on radical store closure programmes.

Piling on the misery has been the under-pressure casual dining sector, with Prezzo, Byron and Jamie's Italian all shutting restaurants and culling hundreds of jobs.

Conviviality said it plans to continue trading and will work alongside advisers as it explores a "number of inbound enquiries" over a possible sale of all or parts of the business.

The company said it will continue trading over that period in the hope of preserving "as much value as possible" for its stakeholders.

It will keep working alongside advisers and said it is exploring "a number of inbound enquiries regarding a potential sale of all or parts of the business".

"Following discussions with its lending banks, the board has resolved to file notice of intention to appoint administrators to the company," Conviviality said in a market announcement.

"Unless circumstances change, and in accordance with statutory requirements, the board intend to appoint administrators within 10 business days."

The chain first started in 1981 before growing to have more than 610 shops across the UK.

Over the past few weeks, the firm has seen its chief executive Dianna Hunter step down after issuing a string of profit warnings and revealing a £30 million tax bill.

Conviviality was forced to go cap in hand to investors to raise £125 million as a result, but it has been unable to convince them of its long-term future.

Ms Hunter, a former Waitrose director, had been chief executive since 2013 and led the group through its stock market flotation in the same year.

She also oversaw a number of acquisitions, including Wine Rack, Matthew Clark and Bibendum.

Non-executive chairman David Adams has taken her place until further notice. </s> Thousands of jobs could be put at risk as the owner of Bargain Booze heads for administration, according to reports.

Conviviality, which owns the company, has failed to raise £123 million in a shares offer , Sky News states.

They say it is likely to lead to PricewaterhouseCoopers being appointed as administrator on Thursday.

The Bargain Booze chain has more than a dozen stores across North Wales although these are run on a franchise model. </s> Staff on Teesside are facing uncertainty after the owner of Bargain Booze - which is also a key supplier for Wetherspoons pubs - warned it will bring in the administrators within days.

Struggling drinks distributor Conviviality Plc said it is exploring a “number of” inquiries to offload the business and has filed a “notice of intention” to appoint administrators within 10 days “unless circumstances change”.

The group has Bargain Booze stores across Teesside in Middlesbrough , Stockton , Redcar , Hartlepool , and Darlington .

It is not yet known whether branches will close.

The group, which runs more than 700 retail stores trading as Bargain Booze, Select Convenience and Wine Rack, employs around 2,600 staff overall.

A spokesman 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.”

It’s the latest in a string of big-name retailers to announce they are in trouble since the start of the year.

On Wednesday Grainger Games announced Teesside stores were among those at risk of closure, while earlier this month toy giant Toys R Us confirmed it was closing all stores within weeks.

Conviviality Plc is a major supplier to massive pub chain Wetherspoons and also supplies big UK festivals including Bestival, Isle of Wight Festival, and British Summer Time.
UK retailer Conviviality, owner of Bargain Booze, says it intends to appoint administrators within ten days.