Under-the-cosh booze seller and wholesaler Conviviality PLC (LON:CVR) updated on its current woes on Friday and said it was mulling a fundraise to recapitalise the group.
Shares have plunged in recent days and on Wednesday were suspended at 101.2p each ahead of the company saying it was cancelling its dividend after revealing it must pay a shock £30mln tax bill to HMRC by March 29, creating what it called a "short-term" funding requirement.
READ: Conviviality's share price on the skids after interim profits fall
To improve its cash position by £8.2mln, the company axed its interim dividend of 4.5 pence a share.
That came on the heels of a profit warning the week before, which prompted £300mln to be wiped off the group's value, as it said adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) was expected to come in 20% below market expectations.
In today's brief market update, Conviviality said it was having "constructive discussions" with its lenders.
It has engaged with advisers and broker regarding the possibility of an equity fundraise, it added, while PwC is undertaking a review of the business and its future funding requirements.
On the tax bill, it said it was talking with HMRC, which has been "receptive to our needs and these discussions continue".
Conviviality listed in London on AIM in 2013 and has been growing aggressively via acquisitions since then.
The same year it paid £1.6mln to buy rival off-licence Wine Rack.
In 2015, it made a £200mln reverse takeover of the UK’s biggest drinks wholesaler, Matthew Clark, from pub chain Punch Taverns and Australian-owned Accolade Wines.
A year later, it bought wine specialist Bibendum for £60mln and took a stake in Peppermint, which runs bars at large festivals and outdoor events.
Last week, the group had said it had not seen any "material weakness" in demand and that its cost-cutting actions were "fully on track".