FRC may investigate Conviviality's accounting errors
The Financial Reporting Council (FRC) is expected to look into reported accounting irregularities at Conviviality, according to reports.
The news stems from last month's announcement by Conviviality of an unexpected £30 million tax bill, which followed two profit warnings.
In a statement the regulator said: “The FRC is looking closely at the reported accounting issues at Conviviality. If the relevant threshold tests are met in relation to accountants at the company and/or its auditors a formal investigation may be opened.”
PwC was called in as administrators for Conviviality last month when the company failed to secure the £125 million in emergency funding it needed to shore up its finances, but a few days after PwC’s appointment the group announced the business and assets of the Conviviality Retail businesses (including the chains Wine Rack, Select Convenience and Bargain Booze) had been sold to Bestway for £7.25 million, saving more than 2,000 jobs.
Magners and Tennent’s supplier, C&C, had already acquired Conviviality Direct, which includes wholesalers Matthew Clark and Bibendum PLB, safeguarding a further 2,300 jobs.