Conviviality collapse costs Bargain Booze franchisees £9m

Bargain Booze Conviviality Bankrupt administration franchisees share price shares
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Bargain Booze franchisees are to see the approximately £9m of Conviviality shares they held wiped out by the company’s imminent administration.

Bargain Booze franchisees were given shareholdings related to annual store performance targets, but the statement today by Conviviality said these have "little-to-nil value". 

Compared to the share price when shares were last handed out in October 2017, this represents a collective loss of approximately £9m.

In the last share reward hand-out alone, the average shopkeeper that qualified received for shares received holdings worth £22,950 at the time.

The value of the shares was destroyed when Conviviality – Bargain Booze's wholesaler – said it would be forced to cease trading unless it could secure £135m in investment.

A newly-issued statement said it had failed to achieve this and would begin working with administrators to sell the business, either in its entirety or piece-by-piece.

If the company is not sold as a going concern, there may be other losses for Bargain Booze shop owners, such as any credit owed to them by Conviviality. One Bargain Booze franchisee told Retail Express: "We are owed a significant amount of credit from Easter stock.”

Read more:

Bargain Booze retailers react to Conviviality collapse

Major brewer in talks to acquire Conviviality

By Jack Courtez Avatar
By Jack Courtez 30 Mar, 2018

Comments

1 comments
  • By Chris Robinson 25 Apr, 2018
    Reply

    What’s Bestway, the new owner of Bargain Booze, doing to help franchisees in way of goodwill? Considering they purchased Bargain Booze and several other Conviviality brands at an absolute bargain price, shouldn’t they be offering something to all the franchisees that have lost out financially?

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