Bargain Booze and Wine Rack ‘scrambling for survival’ amid fears of worst high street crisis since 2008
Drinks giant Conviviality is now said to be putting together a new business plan that will form the basis for emergency fundraising
THE company behind popular high street off-licence chains Bargain Booze and Wine Rack is reportedly scrambling to avert collapse.
Drinks giant Conviviality is now said to be putting together a new business plan that will form the basis for emergency fundraising.
The company ran into trouble last week, following a string of calamitous financial mishaps that led to its shares being suspended.
Without an injection of new cash the company, which has 700 stores and employs 2,600 people, could go under.
Conviviality is preparing to tap its shareholders for as much as £150m to help it meet an outstanding tax bill and provide much-needed funds to keep its shelves stocked with goods.
Management is confident investors will come to the rescue however the failure to source further financing quickly would almost certainly force it into administration.
Meanwhile, Carpetright is also facing a desperate bid to stay in business,
The chain is planning to close a chunk of its 440-strong store estate, through a company voluntary arrangement.
It's a restructuring scheme that enables businesses with too many outlets to pull out of some and negotiate cheaper rents on others.