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| Bargain Booze firm Conviviality close to administration | Bargain Booze firm Conviviality close to administration |
| (35 minutes later) | |
| Conviviality, the owner of Bargain Booze, has announced plans to file for administration within two weeks. | Conviviality, the owner of Bargain Booze, has announced plans to file for administration within two weeks. |
| The firm also owns Wine Rack and supplies more than 25,000 restaurants, hotels and bars. | The firm also owns Wine Rack and supplies more than 25,000 restaurants, hotels and bars. |
| It has issued profit warnings in recent weeks and revealed a £30m tax bill. The company sought £125m from investors but said it had been unable to raise those funds. | It has issued profit warnings in recent weeks and revealed a £30m tax bill. The company sought £125m from investors but said it had been unable to raise those funds. |
| Conviviality employs about 2,500 staff and their jobs are now in jeopardy. | Conviviality employs about 2,500 staff and their jobs are now in jeopardy. |
| Earlier this month, the company slashed its forecast for underlying earnings this year to £55m from £70m. | |
| Just days later, on 14 March, it revealed a £30m tax bill that had to be paid by the end of the month. | |
| Those revelations prompted the resignation of chief executive Diana Hunter, who had been in charge since 2013, the year Conviviality listed on the London Stock Exchange. | |
| High Street stress | |
| Conviviality had been trying to raise £125m to keep the business going, but on Wednesday it announced that those attempts had failed. | |
| In its latest update, the company said: "Unless circumstances change, and in accordance with statutory requirements, the Board intend to appoint administrators within 10 business days. | In its latest update, the company said: "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 secured creditors can, however, appoint administrators without the requirement for notice." |
| Conviviality said it would continue to trade and was exploring "a number of inbound enquiries regarding a potential sale of all or parts of the business". | |
| The collapse of Conviviality is the latest sign of stress in the retail and hospitality sectors. | |
| Last week, fashion chain New Look said it would close 60 stores and cut 1,000 jobs, and restaurant chain Prezzo announced that a third of its restaurants would close. | |
| At the end of February the UK arm of Toys R Us went into administration. |