Yet another major retailer, Conviviality, the firm behind Bargain Booze and Wine Rack, is set to fall into administration. The awaiting administration can also result in putting more than 2,500 jobs at risk. It is believed PwC has been appointed to assist with the administration.
With 700 shops and serving more than 20,000 pubs and restaurants across the UK including the JD Wetherspoon, Bargain Booze is the UK’s largest off-licence chain. Bargain Booze uses franchise model, and it has the largest business presence in North West England.
The collapse is believed to cause a major short term supply disruption to pubs across the country. A spokeperson for the British Beer & Pub Association commented:
“Alternative suppliers will be sought in order to minimise the impact on the trade as far as possible, but inevitably a situation like this will be causing concern for some pubs”.
The news comes after the company failed to pay its £30 million tax bill and also to raise £125 million it was seeking from from the investors to continue running the business.
Furthermore, the company’s financial trouble was made clear recently when its Chief executive, Diana Hunter resigned.
“The company is in discussions with its lending banks and advisers regarding other possible options and is in receipt of a number of inbound enquiries regarding a potential sale of all or parts the business”.
Other major retailers who have recently collapsed who have recently collapsed include Toys R Us, Maplin and Prezzo.