Convivality aims to raise £125m to prevent collapse

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.

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Diana Hunter

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.

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