IN a drastic turn from their surging profits last year, Conviviality are set to go into administration. It comes less than a month after they received a surprise £30m tax bill, with executive chairman David Adams claiming the company was facing “a short-term challenge.”
The development marks the fall of one of the largest franchised off-license chains in the country, which will put thousands of jobs at risk. The company, which provides alcohol to Bargain Booze as well as Wetherspoons, frequently franchised out to local businesses and pubs, many of which reside in Llanelli. Conviviality’s demise is part of a continuing trend of big retail companies collapsing, dubbed the ‘retail apocalypse’ by some.
Within the past few years Conviviality saw its revenue rapidly increasing, doubling and even tripling in some years. Around halfway into this month it has plummeted, forcing the company to request £125m from investors.
In a statement, Conviviality said: “Despite a significant number of meetings with potential investors resulting in good levels of demand, and constructive discussions with a number of key customers and suppliers regarding the provision of support, there was ultimately insufficient demand to raise the full £125m. The board wish to thank its customers, suppliers and employees for their continued support during this difficult period for the company.”
The company has just 10 business days before administrators are put in place. They are now in talks with banks and advisors about the Conviviality’s direction moving forward, which could see parts or even all of the business being sold.