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The wholesale arm of British retail chain Bargain Booze was acquired by the owners of Magners cider on Wednesday after it went into administration, saving 2,000 jobs threatened with redundancy.
The wholesale division of London-listed Conviviality, which delivers beverages to more than 24,000 retail outlets across Britain, was snapped up by C&C Group, according to appointed administrators PricewaterhouseCoopers.
Dublin-based C&C, which manufactures and distributes branded beer, cider, wine, soft drinks and bottled water, took on the 2,000 employees as part of the deal, PwC said.
‘We are delighted to have achieved this sale, securing continued employment for more than 2,000 Conviviality staff,’ said Matthew Callaghan, joint administrator and PwC partner.
‘At a time of upheaval in the retail sector, it’s encouraging to see viable businesses attracting strong interest and being able to continue serving their clients.’
The deal does not include Conviviality’s retail business, which includes hundreds of Bargain Booze and Wine Rack outlets.
The retail arm is not currently in administration but it remains in financial trouble, with talks continuing to find a potential buyer, PwC said.
Conviviality confirmed last week that it planned to appoint administrators after a string of profit warnings and the discovery of a £30 million ($42 million, 34 million euros) tax bill.
Wednesday’s announcement that the 2,000 wholesale roles would be secured comes amid gloomy times on the British high street.
UK fashion chain New Look last month agreed a restructuring plan with creditors, resulting in 60 store closures and the loss of up to 980 jobs.
Meanwhile the British arm of troubled retailer Toys’R’Us is winding down its activities, with the loss of more than 3,000 positions. It comes as the parent group shuts all its US stores.
Electricals chain Maplin has also filed for administration.
And in the casual dining sector, restaurant chains Prezzo, Byron and Jamie’s Italian have all shut restaurants and culled hundreds of jobs.