Conviviality PLC (LON:CVR), the owner of Bargain Booze and Wine Rack, plans to file for administration after failing to raise emergency funds.
The company said in a statement on Thursday: “Unless circumstances change, and in accordance with statutory requirements, the board intend to appoint administrators within 10 business days.
“The secured creditors can, however, appoint administrators without the requirement for notice.”
In mid-March the group shocked investors when it revealed a £30mln tax bill that had to be paid by the end of the month, leading the resignation of chief executive Diana Hunter and the suspension of its shares.
The announcement on the tax bill came just days after the company issued a profit warning, blaming weak margins and a “material error” in its previous financial estimates.
Conviviality had sought to raise £125mln from investors through a placing of new shares but on Wednesday said that attempt had been unsuccessful.
READ: Conviviality mulling equity fundraise after it finds shock £30mln tax bill
The collapse of Conviviality has put about 2,500 jobs at risk. The company supplies more than 700 off licences and 23,000 pubs and restaurants across the UK.
Conviviality said it would continue to trade and work alongside advisers in order to preserve “as much value as possible for all stakeholders” as it explores “a number of inbound enquiries regarding a potential sale of all or parts of the business”.
The news is the latest sign of struggles in the retail market following the collapse of Toys R Us UK and Maplin.