UK chains Bargain Booze and Wine Rack sold to Bestway

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Conviviality’s retail arm includes the Wine Rack chain

Conviviality brands Bargain Booze and Wine Rack are set to be sold to food wholesaler Bestway for £7m.

Conviviality’s retail arm, which also includes the WS Retail and Select Convenience chains, was looking for suitors after the company ran into financial difficulty.

The sale is expected to save 2,000 jobs at the chains.

Earlier this week, the wholesale division of Conviviality was bought by C&C, the owner of Magners cider.

Both deals were completed through a pre-pack administration process, which was overseen by PwC.

Last week, Conviviality had announced plans to file for administration.

The company had shocked investors last month with a profit warning and news of an unpaid £30m tax bill. It attempted to raise £125m to rescue the business, but failed to do so.