Bargain Booze owner and drinks supplier Conviviality has announced plans to file for administration within the next two weeks, after failing to secure a proposed £125m fundraising bid to avert bankruptcy.
The unexpected £30m tax bill led to a suspension of the wholesaler’s shares on the junior market and the cancellation of an £8m dividend payment planned for shareholders. After discovering the bill conviviality appointed the PwC to assist discussions with HMRC and key stakeholders.
Conviviality issued a statement which said: “Unless circumstances change, and in accordance with statutory requirements, the board intend to appoint administrators within 10 business days.
“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.”