Conviviality lays out plan of action

UK drinks wholesaler Conviviality has said it is “actively engaging with its stakeholders” as it works out its “funding requirements”.

In a brief update issued today (16 March), the company laid out its current plan of action following on from the shock announcements not only of a £5m shortfall in its profit estimates (subsequently revised) and plunging share prices but of a £30 million tax bill owed to Her Majesty’s Revenue & Customs (HMRC).

In an update, Conviviality announced that its customers and suppliers were “supportive” and “working closely and constructively” with the group; discussions with lenders were “on-going”; PwC was undertaking a review of the business and future funding requirements; HMRC had been “receptive” to the company’s needs and that Conviviality was talking to advisers and brokers about the possibility of an equity fundraise and recapitalisation of the business.

The statement concluded: “The Board wishes to express its gratitude to all its stakeholders for their on-going support during this difficult period for the company.”