Retailer faces collapse after taxman hangover

Hundreds of retail jobs in the West Midlands are under threat after it was revealed Bargain Booze is the latest retailer threatened with closure.

Bargain Booze, which has at least 30 stores in the region, is on the brink of administration. Its website was no longer live this morning.

The chain is the latest in a string of retailers to be hit by problems.

Crewe based Conviviality, the owner of the chain, has confirmed it has failed to raise £125m from investors through a placing of shares.

The firm, which employs 2,500 staff across the UK, has suffered a string of profit warnings in recent weeks and also has a £30m tax bill. Chief executive Diana Hunter has also left the business.

In a statement, Conviviality said: “Despite a significant number of meetings with potential investors resulting in good levels of demand, and constructive discussions with a number of key customers and suppliers regarding the provision of support, there was ultimately insufficient demand to raise the full £125.0m.

“The company is in discussions with its lending banks and advisors regarding other possible options and is in receipt of a number of inbound enquiries regarding a potential sale of all or parts the business.”

The statement added that shareholders in the company will receive little-to-nil value.

The company also owns Wine Rack and wholesaler Matthew Clark and supplies more than 700 off licences and 23,000 pubs and restaurants in the UK.

The British Beer & Pub Association said: “We are working with our members to assess the impact of the ongoing issues with Conviviality who, through Matthew Clark, are significant suppliers to the pub trade.

“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 likely cause short term supply issues for pubs.”

The news comes just weeks after the collapse of Toys R Us and Maplin, while a number of restaurant chains have shut sites or restructured in the wake of fragile consumer spending and rising costs.