Molson Coors, C&C Linked To Purchase Of Conviviality
Brewing company Molson Coors has emerged as a potential buyer for embattled UK drinks company Conviviality, as has C&C Group, the maker of Bulmers cider and Tennent's beer.
The Sunday Times reports that the two companies are understood to be in talks with Conviviality's administrators for the purchase of all or part of the drinks business.
Last Thursday, Conviviality announced its intention to appoint administrators, after failing to raise the necessary funds to recapitalise the business.
It has been a challenging few weeks for Conviviality, which employs around 2,500 staff across the UK, following a number of profit warnings.
Two weeks ago, the company suspended shares on the AIM market, after identifying an unexpected £30 million tax bill, due what it described as an "arithmetic error" in its financial forecasts.
Following this news, the group's chief executive Diana Hunter stepped down from her position.
It is reported that Molson Coors and C&C are likely to be interested in the company's Matthew Clark business, which supplies drinks to the hospitality channel.
Conviviality also operates more than 700 franchise stores across the UK under the Bargain Booze and Wine Rack brands.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.