Wholesaler Conviviality issues profit warning following discovery of £30m tax bill
Conviviality, the UK's biggest wholesaler of alcoholic drinks, has issued its second profit warning in less than a week following the discovery of a £30m tax bill.
Company shares on AIM were suspended following the discovery of the bill, which must be paid by the end of the month.
Conviviality has also slashed its profit forecast by a fifth and warned that further cuts could be made.
Professional services network PwC has been appointed to assist discussions with HM Revenue & Customs and key stakeholders including lending banks, credit insurers, suppliers and other creditors.
The company said: "Whilst there can be no guarantee, the board believes this short-term funding requirement will be satisfactorily resolved."
Conviviality became the UK's largest wholesaler following the purchase of Matthew Clark in 2015 and Bibendum in 2016.
Conviviality creates three divisions after Matthew Clark and Bibendum purchases >>
Conviviality Brands buys Matthew Clark for £200m >>
Bibendum launches data tool to identify emerging wine trends >>
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