Conviviality plans share launch to fill debt holes

Conviviality, the company behind Bargin Booze and Wine Rack as well as national wine wholesalers Matthew Clark and Bibendum, has announced plans to raise £125 million in capital from the sale of new shares. The sale of the shares will cover a £30 million outstanding bill to HMRC as well as a £30 million revolving credit line.

The company claims without finding additional funding, the company is unlikely to keep trading. Conviviality’s chief executive Diana Hunter stepped down on Monday amid analyst criticisms of a lack of systems and controls at the company. Apparently a spreadsheet error meant the company's margins were not as good as thought, leading to the profits warning, on top of failing to allow for a £30 million payment to the HMRC.