UK wine retailers sold following Conviviality collapse

BElEAGuERED DRiNks BusiNEss Conviviality announced it would be collapsing into administration at the end of March, which led to the piecemeal sales of its retail operations, including Bibendum, Bargain Booze and Wine Rack.

Conviviality’s deepening crisis was sparked by profit warnings, followed by its admission that it had failed to account for a £30 million tax bill, resulting in the suspension of trading in the company’s shares by mid-March, as well as the resignation of CEo Diana hunter.

Conviviality recruited consultancy group Pricewaterhouse Coopers llP (PwC) to assist in talks with hM Revenue & Customs, and a bid was made for an equity placing but, despite an optimistic projection of £125 million, it was unable to raise the necessary funds from investors.

on 29 March, Conviviality Brands ltd and Conviviality Plc announced they would hand themselves over to PwC administrators David Baxendale, ian Green and Matthew Callaghan. They dismantled the company and, within in a week, sales were concluded of its key retail business arms.

Magners cider owner C&C Group announced its acquisition of Conviviality’s Matthew Clark and Bibendum drinks businesses, with support from the world’s largest brewer, AB inBev.

on 6 April, grocery wholesaler, Bestway, bought out its retail division in a £7.25 million deal, comprising more than 800 stores under the Bargain Booze, select Convenience, Wine Rack and Central Convenience banners.

Creditors to Conviviality’s retail businesses are expected to be out of pocket after Conviviality admitted that the businesses were ‘not expected to have sufficient assets to satisfy all their liabilities’.

some investors have threatened to take legal action over the alleged mismanagement of the company.