Conviviality, the troubled wholesaler of alcoholic drinks in the UK, has announced emergency plans to raise £125m to save the business.
The move follows the company’s issue of two profit warnings last week following the discovery of an unexpected £30m tax bill.
Company shares on AIM were suspended eight days ago after the discovery of the bill, which must be paid by the end of the month.
On Monday chief executive of Conviviality Diana Hunter stepped down with immediate effect from the business.
By raising £125m, the company aims to settle the tax bill with HMRC, resolve overdue payments with creditors, repay the group’s £30m credit facility and provide cash to recapitalise the business.
In a statement on the London Stock Exchange, Conviviality said that if it is unable to raise the funds the business “is unlikely to be able to trade on a going concern basis”.
Conviviality became the UK’s largest alcoholic drinks wholesaler following the purchase of Matthew Clark in 2015 and Bibendum in 2016.