BOOZE RESCUE HOPES

A big grocer could rescue part of close-to-collapse drinks firm Conviviality, say experts.

Leading supermarkets, as well as convenience chains Costcutter and Spar, have been named as possible suitors for its distribution arm.

Broker Shore Capital said brewer Marston’s and Magners cider owner C&C Group may also be interested.

It comes after Conviviality, which owns off-licence chains Bargain Booze and Wine Rack, confirmed it was likely to collapse into administration.

The move, which puts 2,600 jobs at risk, came as it failed to pay a £30million tax bill and couldn’t raise £125m in emergency funding. Conviviality owns drinks distributor Matthew Clark and delivers to 10,000 customers. It is the biggest supplier to pub giant Wetherspoon. Analyst Phil Carroll, of Shore Capital, said: “There is clearly need for pace so that the business does not fall apart through lack of product on the shelves. We see potential interest from supermarkets, convenience and grocery groups, high street value retail chains and wholesalers.” Molly Johnson-Jones of GlobalData said: “Conviviality took its eye off the ball in search of new growth. “Add in the accounting errors and hidden margin erosion, and we can see the reasons for its demise.”