Bargain Booze looks to fund expansion

Owners of the Bargain Booze off-licence chain Conviviality Retail wants to raise up to £65m by floating on the Alternative Investment Market later this month.

A Bargain Booze store in Lancaster

According to The Financial Times the group wants generate extra cash to fund expansion in the south east of England, as well as allow private equity backer ECI Partners – which backed a £63.5m management buyout at Conviviality Retail in 2006 – to exit the business.

Conviviality has 611 outlets owned by 461 franchisees with a strong presence in the Northwest. It achieved revenues of £372m for the year to April, down from £395m and earnings before, interest, tax, depreciation and amortisation were down 4% to £12.5m.

The group is headed by Diana Hunter, former director of Convenience at Waitrose, who ECI appointed in November.

Reports suggest Conviviality Retail, formerly called Bargain Booze Holdings Limited, wants to increase its focus on wine.