Wed 28th Mar 2018 - Future of Conviviality in serious doubt as shareholders fail to support £125m fund-raise Future of Conviviality in serious doubt as shareholders fail to support £125m fund-raise: The future of Conviviality, the UK alcohol wholesaler serving consumers through the on-trade and its franchise retail estate, is in serious doubt after shareholders failed to support a £125m equity fund-raise to recapitalise the business. The company said it is in discussions with its lending banks and advisors regarding other possible options and is in receipt of a number of inbound enquiries regarding a potential sale of all or parts the business. However, it added shareholders in the company would receive “little-to-nil value”. Without the funds being raised, Conviviality previously said it was unlikely it would be able to continue trading. The company stated: “On 21 March 2018, the company provided an update to the market on the actions the board were undertaking to resolve the company’s funding requirements. A key element to this was an equity placing to raise gross proceeds of £125m, which the directors believe is the minimum amount required to adequately recapitalise the business. Despite a significant number of meetings with potential investors resulting in good levels of demand, and constructive discussions with a number of key customers and suppliers regarding the provision of support, there was ultimately insufficient demand to raise the full £125m. The board wishes to thank its customers, suppliers and employees for their continued support during this difficult period for the company. The company is in discussions with its lending banks and advisors regarding other possible options and is in receipt of a number of inbound enquiries regarding a potential sale of all or parts the business. A further update will be made as appropriate. The board believes shareholders in the company will receive little-to-nil value.” Conviviality previously said talks were ongoing as it bids to make up a cash shortfall to pay an unexpected £30m tax bill by tomorrow (Thursday, 29 March). It also warned it expected adjusted Ebitda to come in 20% below market expectations. The company later said it would fall in a range of between £55.3m and £56.4m. Following the discovery of the unexpected tax bill, the company stopped trading on AIM. Diana Hunter also stepped down as chief executive with non-executive chairman David Adams stepping into the role of executive chairman until further notice.