Food wholesaler Bestway Direct Ltd has acquired the retail arm of troubled drinks company Conviviality in a £7.5 million deal which comprises high street wine retailers Bargain Booze, Wine Rack, Select Convenience and WS Retail.
The sale safeguards continued employment for approximately 2,300 staff across the Conviviality Retail business, as well as ongoing trade for suppliers and franchisees, the group said in a statement, however, it is believed that the sale will not be sufficient enough to provide any financial return to shareholders.
Conviviality also said in its statement: “The board consider that the offer from Bestway represents the best outcome for franchisees, suppliers, customers and employees of the Conviviality Retail business.
Bestway is one of Britain’s biggest food wholesalers serving thousands of retailers, as well as owning the Well pharmacy chain.
Conviviality’s retail arm operates more than 800 stores.
Last week Magners owner C&C purchased Conviviality’s wholesale arm, also through a pre-pack administration.
The Irish cider giant said that, with the support of drinks group AB InBev, it had bought Conviviality brands Matthew Clark, Bibendum, Catalyst, Peppermint, Elastic and Walker & Wodehouse for a nominal sum.