This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
Hunter leaves Conviviality
The CEO of UK drinks wholesaler Conviviality, Diana Hunter, is to step down from the board “with immediate effect”, following a difficult two weeks for the company.
Diana Hunter
In light of the recent reports around UK drinks wholesaler Conviviality, speculation was high that Hunter would be forced to leave the company at some point this week.
In a report run by Sky News at the weekend, it appears that the price of raising an emergency £100 million from its investors could be Hunter’s job and it seems this has been the case.
In a statement issued today, Conviviality said: “The Board of Conviviality announces that Diana Hunter, Chief Executive Officer of the Company, is stepping down from the Board of the Company with immediate effect. Ms Hunter will remain with the Company for a period of time in order to provide transition support. David Adams, non-executive Chairman of Conviviality, is today stepping into the role of Executive Chairman until further notice.”
After several years of rapid growth that has seen Conviviality acquire Bibendum and Matthew Clark and rise to the top of the UK drinks industry, it has been an abrupt and precipitous few weeks for the company, which first issued a profit warning earlier this month and then revealed it had also failed to account for a tax bill of £30m.
The announcements caused its share price to plummet and trading was suspended last Wednesday. According to The Times, the company’s market value fell from £567m to under £200m.
Sky added that the money is expected to be raised through the placing of new shares and although trading was suspended at 101p a share, the placing could be undertaken for as little as 10p, wiping out a huge amount of equity. The Times, however, has said the money may be raised through a rights issue.
Either way, Conviviality said in a recent statement it remains confident of raising the necessary funds and its customers and suppliers were continuing to be supportive.
One longstanding and major supplier of Conviviality told the drinks business it had “great faith in the business,” adding: “We are standing behind them very strongly and the vast majority of all suppliers are doing exactly the same.
“The business itself is extremely strong and will make a healthy profit this year. We for one are very confident they will continue to thrive and prosper.”
PricewaterhouseCoopers are looking into what caused the financial errors. If it is found that “human error” was behind it then the fundraising can go ahead but not if PwC discovers the problem is more systemic.
How can someone step down ‘with immediate effect’ then apparently stay on to provide ‘transition support’? Essentially she is out but only half out for now it would seem?
How can one rack up a £30 million tax liability and for it to come as a surprise? This has to be at the very least gross incompetence by whoever heads up the finance function if there is no current CFO.
Strikes me the whole board are in the dock to some degree over this shambles. Glad I am not a shareholder!
Bibendum, Mathew Clark, cheap wine, it was never going to work, the whole company was a sham, it will implode even further. When will the wine trade wake up to the fact that you cannot make money out of cheap wine,
Mike Hall