The owner of Bargain Booze has announced that it plans to appoint administrators within the next ten business days “unless circumstances change.” The said announcement placed approximately 2,500 jobs on the line.
In a brief statement, Conviviality disclosed that it plans to continue trading and to work alongside some advisers “in order to preserve as much value as possible for all stakeholders.”
The group said that it is currently exploring some options for a possible sale of all or some parts of the business.
Shares in the firm are listed on the AIM division of the London Stock Exchange. It will be suspended pending further notice.
Conviviality is the most recent addition to a series of high street names that succumbed to financial pressure. During the past weeks, the company has issued a series of profit warnings and the chief executive of the firm has stepped down following the revelation of the group regarding a tax bill amounting to £30m that it had not disclosed previously.
So far in 2018, both Maplin and Toys R Us have already filed for administration, placing thousands of jobs at risk. New Look has also announced that it is set to close dozens of its stores, and shoppers and investors are also worried about the future of chains such as Carpetright, Mothercare, and Moss Bros.
A rise in inflation, sluggish wage growth, and the accelerated development of e-commerce giants such as Amazon are mainly to blame for the woes of the retail industry.
Conviviality had been attempting to raise £125m from its investors to help in bridging a funding squeeze. However, last Wednesday, the company said that there had been “insufficient demand” to raise equity.