Reports of store closures at Bargain Booze have begun to emerge as its parent company Conviviality struggles with administration, but potential buyers are also circling.
According to the Retail Express, franchisee owners of Bargain Booze are struggling with supply issues, stating that they are missing around 30 per cent of what they order.
Another told the publication that they were instructed by Conviviality to “pack the stock up and go home because the store was shutting down”.
However, Conviviality has denied they were instructing store owners to close down.
“Our Bargain Booze store networks – both centrally managed and franchised – are open for business and operating as usual. There has been no directive from the business to close any stores,” it stated.
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Store owners also reportedly bemoaned Conviviality’s handling of the situation, saying they have heard nothing from the company other than that they were in takeover talks with numerous buyers.
Although the alcohol retail giant failed to raise £125 million in emergency funding to stop it falling into administration, some buyers are now understood to be considering buying the company.
Sources from City AM have highlighted Chinese private equity firm ZQ Capital as the latest potential buyer and is understood to be interested in buying the whole of Conviviality.
Other potential buyers include Magners Cider owner C&C group, as well as Cobra owner Molson Coors.
Private equity firm Endless is also thought to have shown an interest.
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1 Comment. Leave new
I guess the game is really up. Feel sorry for the shareholders.
Still, investors should have spotted red flag after red flag in the company and before it reported their first profits warning. For example, one red flag dealt is falling operating cash flow. That fell from £7.3m to £528k, a big signal that profits aren’t translated into cash flow.
A lesson all investors should learn.