The move will save around 1,900 jobs and will ensure that all trade creditors of the Conviviality Direct business will be paid in full.
Last week Conviviality said it planned to appoint administrators. The news followed the stepping down of its chief executive, Diana Hunter, after the company issued two profit warnings in the space of a few days and revealed an overlooked £30 million tax bill to be paid to HMRC.
Conviviality Direct, which includes the brands Matthew Clark and Bibendum, is being purchased by C&C Group through a pre-pack administration. The sale also includes the disposal of Catalyst, the company's brand representation business, and the Peppermint outdoor events business.
In a statement, Conviviality said: “The board consider that the offer from C&C represents the best outcome for creditors, suppliers, customers and employees of the Conviviality Direct business. C&C have undertaken to provide substantial funding to the Conviviality Direct business to ensure creditors are paid and to address the cash flow constraints that have been encountered.”
No other companies within Conviviality have had administrators appointed at this stage and the Bargain Booze and Wine Rack retailers remain up for sale,
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