Bargain Booze Owner’s Struggles Continue
- Conviviality, owner of Bargain Booze, plans to file for administration
- £125m fundraising bid failed to prevent bankruptcy
- Unexpected £30m tax bill led to shares suspension and cancelled dividend payment
- PwC appointed to assist discussions with HMRC and stakeholders
- Administrators may be appointed within 10 business days
- Company continues trading while exploring potential sale of all or parts of the business
Conviviality, the owner of off-licence retailer Bargain Booze, has announced plans to file for administration within two weeks after failing to secure a £125m fundraising bid. The unexpected £30m tax bill led to the suspension of its shares on the junior market and the cancellation of an £8m dividend payment for shareholders. Conviviality appointed PwC to assist in discussions with HMRC and key stakeholders. In a statement, the company said that unless circumstances change, they intend to appoint administrators within 10 business days while continuing to trade and working with advisers to preserve value for all stakeholders as it explores potential sales of all or parts of the business.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Conviviality’s financial situation and plans to file for administration due to an unexpected tax bill. It also mentions the appointment of PwC as advisors and ongoing discussions with HMRC and stakeholders.
Noise Level: 3
Noise Justification: The article provides relevant and factual information about Conviviality’s financial situation and its plans to file for administration due to an unexpected tax bill. It also mentions the appointment of PwC as advisors and the possibility of a potential sale of the business. The content is focused on the topic without diving into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: Conviviality’s shares on junior market and HMRC
Financial Rating Justification: The article discusses Conviviality’s financial difficulties, including an unexpected tax bill and its impact on the company’s stock market presence and discussions with HMRC. It also mentions potential sale of parts of the business, which could affect financial markets.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Financial Crisis
Impact Rating Of The Extreme Event: Severe
Extreme Rating Justification: The extreme event is a financial crisis due to the failure to secure a £125m fundraising bid, leading to bankruptcy and suspension of shares. The impact is severe as it involves a significant amount of money, cancellation of dividend payment, and potential sale of parts of the business.
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