Matthew Callaghan, Ian Green and David Baxendale of PwC have been appointed as joint administrators to alcohol wholesaler and retailer Conviviality, which has been in difficulties ever since the company identified a ‘material error’ in its financial forecasts and an unexpected £30m tax bill earlier this year
Earlier this week Conviviality announced it had sold its Conviviality Direct businesses, Matthew Clark and Bibendum, to C&C Holdings NI Ltd, the owners of the Magners cider brand. It said the move would preserve some 1,900 jobs in the wholesale arm of the business.
The sale also included the disposal of Catalyst, the company's brand representation business, and Peppermint the outdoor events business.
As released by C&C in its announcement, in the latest audited accounts for the 52 weeks ended 30 April 2017, the Conviviality Direct businesses had gross revenues of £1.2bn and adjusted EBITDA of £51.3m. Gross assets are approximately £230m.
PwC, which worked with Conviviality on the sale of the wholesale business, said it is still looking for a buyer for the retail business, which continues to trade under the names of Bargain Booze, Bargain Booze Select Convenience and Wine Rack.
Report by Pat Sweet
