This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-43580679
The article has changed 11 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| 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. | 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. | 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. | 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. |
| The high-speed crash of Conviviality | |
| As recently as 29 January Conviviality management was bouyant. Announcing half-year pre-tax profits of £7.4m chief executive Diana Walker celebrated the company's "strength" and "above market growth". | |
| However, the first sign of trouble came a little over a month later, on 8 March. The company warned that profits would be 20% below market expectations. It blamed an error in its forecasts and weaker profit margins. | |
| Then, on the 14 March, it revealed a £30m tax bill that had to be paid by the end of the month. It entered discussions with its lenders and looked at raising funds on the stock market. | |
| By 28 March the game was up. An effort to raise £125m from shareholders failed. A day later Conviviality announced its intention to call in the administrators. | |
| From the first sign of trouble to failure took just 21 days. | |
| High Street stress | 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. | 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". | 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. | 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. | 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. | At the end of February the UK arm of Toys R Us went into administration. |