The company behind the Magners and Bulmers cider labels has confirmed a deal to buy a part of the troubled Conviviality business – which also owns Bargain Booze and Wine Rack
Irish based C&C has bought Matthew Clark and Bibendum – the wholesale side of the locally-based business.
The sale is likely to signal the end for Bargain Booze and Wine Rack, the retail division of the business, and the loss of hundreds of jobs.
Earlier in the day C&C confirmed that it was holding talks with Conviviality over a potential deal.
Conviviality supplies around 23,000 pubs and restaurants across the UK including the JD Wetherspoon chain.
The firm announced last week it was planning to go into administration after failing to raise the capital needed to keep it afloat.
The deal, which has received the financial support of drinks firm AB InBev, C&C will acquire Conviviality’s wholesale business for a ‘nominal sum’.
Conviviality bought drinks wholesaler Matthew Clark in October 2015 for £200m and wine specialist Bibendum for £60m in May 2016.
A statement from Conviviality said: “The Board consider that the offer from C&C represents the best outcome for creditors, suppliers, customers and employees of the Conviviality Direct business.