Conviviality goes into administration

Drinks retailer and wholesaler Conviviality has filed for administration just a day after selling its wholesale business.

Administrators PwC released a statement which read: “Matthew Callaghan, Ian Green and David Baxendale of PwC have today been appointed as joint administrators to Conviviality Plc.

“Conviviality Plc continues to engage with parties interested in its retail business, which continues to trade under the names of Bargain Booze, Bargain Booze Select Convenience and Wine Rack.

“PwC will provide further updates in due course.”

Conviviality issued a profit warning in March after it discovered a £30m tax bill which was unaccounted for.

On 4 April, C&C, owner of Magners cider, acquired Conviviality’s Bibendum and Matthew Clark supplier brands.

The company’s administration plans were said to put 2,500 jobs at risk but it is unknown what will happen to the 2,000 people employed at its wholesale distributors.

It was also rumoured that the company may face legal action from its investors over claims they were misled about the financial health of the firm.