Conviviality has formally entered administration as the beleaguered business continues to seek buyers for its retail division.
The Bargain Booze and Wine Rack owner has drafted in PwC to handle the process.
It comes a day after PwC was appointed as administrators to Conviviality Brand Limited, which oversees the Matthew Clark and Bibendum wholesale businesses.
The chains were immediately sold to Magners owner C&C.
PwC’s Matthew Callaghan, Ian Green and David Baxendale will act as joint administrators for Conviviality PLC.
Conviviality and PwC said that the company “continues to engage with parties interested in its retail business”, which includes the Bargain Booze, Wine Rack and Central Convenience fascias.
PwC said it would provide further updates on the sale process “in due course”.
Conviviality added that Investec had resigned as its nominated adviser and house broker with immediate effect as a result of its demise.
Administration puts the exclamation point on a rapid fall from grace for Conviviality.
The company, which had broadened its business into wholesale after acquiring suppliers Matthew Clark and Bidendum, was forced to issue a profit warning at the start of March.
It blamed a “material error” in its financial forecasts and “softened” margins during January and February within its Conviviality Direct wholesale division for the £5.2m shortfall in its predicted EBITDA.
Days later, shares in Conviviality were suspended and it informed the City later the same day of a £30m tax bill it had seemingly failed to account for.
Boss Diana Hunter quit the business a fortnight ago in the wake of the crisis – and days later it filed a notice of intention to appoint administrators after failing to raise the £125m it needed to pay off creditors and secure its short-term future.
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