GRAHAM HISCOTT Booze firm’s on the rack Tax bill blow for drinks shop owner

THE owner of off-licence chains Bargain Booze and Wine Rack risks going into administration, analysts have warned.

Trading in Conviviality shares was suspended yesterday as bosses revealed it faced an unexpected £30million tax bill in two weeks’ time.

It led to a second profit warning in a week after previously disclosing a “material error” in financial forecasts for its wholesale arm.

Conviviality has 650 stores run by more than 400 franchisees and employs nearly 2,700 people.

As well as its own outlets, it also delivers to 10,000 business customers and 23,000 independent shops.

The firm, headed by chief executive Diana Hunter, who earned nearly £1m in pay and perks last year, is due to hold talks with HM Revenue & Customs, but refused to explain what the tax bill was.

The payment, due on March 29, would create a “short-term funding requirement” it said.

The board later announced it was scrapping a 4.5p-a-share interim

The Co-operative Bank has slashed annual losses to £140million. The shortfall, compared with a £477m loss in 2016, came amid a wave of cost cutting.

Boss Liam Coleman said it was “drawing a line under the past”.

The bank plunged into crisis in 2013 with heavy losses and nearly collapsed, which led to it falling into the hands of US hedge funds. dividend that was due to be paid this Friday, saving it around £8.2m.

Old Mutual, Conviviality ’s third biggest shareholder, had already sold its entire 6.95% stake before the shares were re suspended.

A spokeswoman could not confirm if and nd when trading in the firm’s stock would uld resume.

Analyst Phil Carroll of stockbroker Shore ore Capital said: “Our concern is that at the business could be trapped in a vicious icious cash cycle.”

He added he believed t h a t C o nv i v i a l i t y ’s problems oblems were “very fixable” xable” and “the b u s i n e s s mo d e l s t i l l remains mains relevant”.

But he explained: “Our fear ar is that the shortterm m funding alongside further rther liquidity pressure essure could result in the business being ing insolvent and d therefore, going ing into administration.” ministration.” Oil = $64.61

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