The high street is facing a full-blown crisis as the company behind off-licence chains Bargain Booze and Wine Rack scrambles to avert collapse and Carpetright prepares to close scores of shops.
This weekend, drinks retailer Conviviality is hurriedly putting together a new business plan that will form the basis for an emergency fundraising due to be launched in the coming days.
The company was plunged into chaos last week, following a string of calamitous financial mishaps that led to its shares being suspended. Without an injection of cash, Conviviality, which has 700 stores and 2,600 people, could go under, adding to the deep gloom on the high street.
Separately, the Times reports that credit insurers are tightening terms for suppliers to Poundstretcher, the struggling discount retail chain owned by two low-profile brothers based in Leicestershire.
Euler Hermes, one of the leading insurers, is understood to have reduced cover for Crown Crest Group, Poundstretcher’s parent. Crown Crest is used as the counterparty by many suppliers because Poundstretcher has a weaker balance sheet.
