Bargain Booze-owner Conviviality is buying more than 100 convenience stores from collapsed wholesaler Palmer & Harvey in a £25m deal funded by a share placing.
The alcohol wholesaler and distributor has tabled a bid for Central Convenience, which includes franchise rights, 127 convenience stores, 20 linked to petrol stations and 47 including Post Offices, and 18 franchisee operated stores – primarily in the south and south west.
The group is underpinning the deal by raising £30m on the London Stock Exchange by placing 8,000,000 new ordinary shares at 375p each.
Palmer & Harvey's collapse into administration on November 28 saw the loss of 127 jobs at its Brandon depot.
The 90-year-old firm, which was the UK's biggest supplier of cigarettes, appointed PwC as administrators after 'challenging trading conditions' heaped pressure on its cash flow and efforts to revive the business failed to take hold.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here