Bargain Booze

Bargain Booze
Private
Founded 1981
Headquarters Crewe, Cheshire,
United Kingdom
Area served
 United Kingdom
Products Groceries
Parent Bestway
Website www.bargainbooze.co.uk
Bargain Booze, Pudsey, Leeds (2009)

Bargain Booze is a chain of off licence shops, that operates in the United Kingdom.[1] Established in 1981, it grew to 611 shops,[1] and opened the Bargain Booze Select Convenience shop franchise.[2] From 2013 to April 2017, it was owned by Conviviality plc, who also owned the Wine Rack chain;[3] both brands were acquired by Bestway on 6 April 2018.

History

The company originates from a wholesale wine and spirits business, founded by Allan Whittle & Robert Mayor.[4] In 1981, they opened their first retail outlet in Sandbach, Cheshire.[5] The first Bargain Booze franchise opened in 1988, and was the first time the "Bargain Booze" fascia was used.[6][7]

In January 2000, Whittle & Mayor sold the company to BWG Foods. In July 2002, BWG was bought out by Electra Partners.[4] A management buyout backed by a private equity firm, ECI Partners, took over the company for £63.5 million in 2006.[8] Until July 2013, ECI remained the majority shareholder, when the company floated on the Alternative Investment Market (AIM). With the collapse of First Quench Retailing, who owned Threshers in November 2010, Bargain Booze became the largest off licence chain in the United Kingdom.[8]

In September 2013, the company acquired the Wine Rack chain, an off licence chain that specialises in retailing wine, with its 22 outlets mostly located in London and South East England.[3] In December 2013, the company launched its first television advertising campaign.[9] In December 2017 Bargain Booze purchased Central Convenience Stores from Palmer and Harvey.

Operations

The chain was owned by Conviviality PLC, based in Crewe, Cheshire, but on 6 April 2018 became part of the Bestway Group. Bargain Booze is operated through a franchise model, with around 390 franchisees.[4] The chain is strongest in the North of England, particularly the North West.[10] It is the largest off-licence chain in the United Kingdom.[11]

Financial difficulty

In March 2018, the company owner stated that it faced bankruptcy unless it could raise £125m, as it issued its third profits warning in a month. The company had earlier said it was considering tapping shareholders for funds, and had arranged meetings with institutional investors to persuade them to take part in its share placing to raise £125m.[12] This was unsuccessful and at the end of March, Conviviality announced its intention to appoint administrators within a fortnight, putting 2,600 jobs at risk.[13] In early April 2018, the Bargain Booze and Wine Rack brands were acquired for £7m by wholesaler Bestway, while Matthew Clark and Bibendum were acquired by C&C Group, the owner of Magners cider.[14]

References

  1. 1 2 Robinson, Duncan (17 July 2013). "Bargain Booze plans to crack open the south with IPO proceeds" (subscription required). Financial Times. Retrieved 17 July 2013.
  2. ↑ "Who We Are". Retrieved 1 May 2015.
  3. 1 2 Butler, Sarah (2 September 2013). "Bargain Booze owner buys Wine Rack as it expands into south of England" – via www.theguardian.com.
  4. 1 2 3 "Analysis: Bargain Booze - the off-licence chain's owner at a glance".
  5. ↑ News, Manchester Evening (12 January 2006). "£65m Deal for Bargain Booze".
  6. ↑ ""Bargain Booze Has Stiff Challenge" - The Birmingham Post (England), January 17, 2006 - Online Research Library: Questia". www.questia.com.
  7. ↑ "Winning 'marriage of convenience' - Off Licence News - The Voice of Drinks Retailing". www.offlicencenews.co.uk.
  8. 1 2 News, Manchester Evening (16 January 2006). "Bargain booze at the double".
  9. ↑ "Bargain Booze festive campaign offers free Scotch egg to all customers on Christmas Eve".
  10. ↑ Times, The Sunday (14 November 2017). "Our share tips for 2014" – via www.thetimes.co.uk.
  11. ↑ Goodman, By Matthew (30 May 2010). "Bargain Booze beats supermarkets at their own game" – via www.thetimes.co.uk.
  12. ↑ Butler, Sarah (2018-03-21). "Bargain Booze owner Conviviality must raise £125m to halt bankruptcy". the Guardian. Retrieved 2018-03-22.
  13. ↑ Kollewe, Julia; Davies, Rob (29 March 2018). "Bargain Booze owner Conviviality to file for administration". Guardian. Retrieved 29 March 2018.
  14. ↑ Fisher, Martyn (6 April 2018). "Bestway buys Bargain Booze". Better Wholesaling. Retrieved 6 April 2018.
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