Off-licence Retailer Faces Surprise £30m Tax Bill

  • Conviviality reviewing business due to £30m tax bill
  • Suspension of shares and cancellation of dividend payment
  • PwC appointed for business review and future funding requirements
  • Ongoing negotiations with HMRC and discussions on equity fundraise

Off-licence retailer Conviviality is reviewing its business operations as it deals with a £30 million tax bill that was discovered on March 13th and due for payment to HMRC on the 29th. This led to the suspension of shares on the junior market and the cancellation of an £8 million dividend payment planned for shareholders. The company, which owns Bargain Booze and Wine Rack, confirmed that PwC has been appointed to conduct a review of its business and future funding requirements while also discussing the possibility of an equity fundraise for recapitalization with advisers and brokers. Conviviality expressed gratitude to stakeholders for their support during this challenging time.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Conviviality’s situation and actions taken to handle its £30m tax bill without any sensationalism or personal perspective. It reports on the company’s negotiations with lenders, the suspension of shares, cancellation of dividend payment, appointment of PwC for a review, and ongoing discussions with stakeholders.
Noise Level: 3
Noise Justification: The article provides relevant information about Conviviality’s tax bill and its measures to handle it, but lacks in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Conviviality, HMRC, shareholders, customers and suppliers
Financial Rating Justification: The article discusses Conviviality’s £30m tax bill impacting its business operations, suspension of shares, cancellation of dividend payment, and negotiations with lenders, which are all financial matters affecting the company and its stakeholders.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:

Reported publicly: www.retailsector.co.uk