Conviviality uncorks Rhythm and Booze swoop
BARGAIN Booze’s parent company Conviviality Retail has confirmed a deal to buy 26 Rhythm and Booze shops for £1.7m from Bibby Retail Services.
Crewe-based Conviviality said last week it was in talks to acquire some of the assets of the chain, which operates off licences in Yorkshire and the North East.
All staff will be retained, although the shops will be rebranded and eventually moved to a franchise model, Conviviality said. For the year ended December 2013, the stores generated revenues of £13.68m and net profits of £50,000. Five of the stores are freehold properties, with a combined value of £0.54m, and the remainder are leasehold.
In a statement the AIM-listed company said: “The board believes that the purchase of the RNB stores opens up some key regions in which the company does not currently have a presence and will offer great locations to franchisees.”
It said it was confident too that the shops will become more profitable after they are rebranded and also benefit from the group’s buying power.
Conviviality, which was advised by Manchester-based Zeus Corporate finance, is paying £1.5m upfront with a deferred consideration of £200,000.
Chief executive Diana Hunter, said: “This acquisition in entirely in line with our strategy for geographic expansion.
“The 26 stores provide opportunities for us to extend our reach into Yorkshire, offering growth opportunities for the Company and our franchisees. The 26 stores provide opportunities to expand our Bargain Booze, Select Convenience and Wine Rack fascias.”
