Thousands of jobs under threat at troubled Bargain Booze
Hundreds more retail jobs in the North West are under threat after it was revealed Bargain Booze is the latest retailer to be threatened with closure.
Conviviality, the Crewe based owned of Bargain Booze, issued a statement this morning announcing its intention to go into administration.
Bargain Booze has 17 shops in the Greater Manchester area alone.
The chain is the latest in a string of retailers to be hit by problems.
Conviviality, the owner of the chain, released a statement announcing it had failed to raise £125m from investors through a placing of shares.
This was followed by the news the firm is heading into administration and its shares have been suspended.
The statement read: “Further to the announcement on 28 March 2018, and following discussions with its lending banks, the Board has resolved to file notice of intention to appoint administrators to the Company.
“Unless circumstances change, and in accordance with statutory requirements, the Board intend to appoint administrators within 10 business days. The secured creditors can, however, appoint administrators without the requirement for notice.
“The directors intend to allow the business to continue to trade and the Company continues to work alongside advisers in order to preserve as much value as possible for all stakeholders as it explores a number of inbound enquiries regarding a potential sale of all or parts of the business.
“Further announcements will be made as appropriate.”
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.
Earlier this month Conviviality cut its annual profits by a fifth to £55m and then revealed it owed £30 million to the taxman.
The announcement was followed by the news that chief executive Diana Hunter was stepping down.
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.