Bargain Booze owner acquires 26 Rhythm and Booze stores
Bargain Booze owner Conviviality Retail has exchanged contracts to acquire 26 Rhythm and Booze Stores from Bibby Retail Services.
Situated mainly in Yorkshire and the North East of England, the stores will be rebranded under the Bargain Booze, Select Convenience or Wine Rack fascias although all store staff will be retained.
Conviviality will pay £1.7 million cash for the stores of which 0.2 million will be a deferred consideration.
In a statement, Conviviality said the acquisition will help it to establish a presence in key regions where it currently does not operate any stores. Over time, the retailer will consider transferring the stores to its franchise model.
For the year ended 31 December 2013, the 26 stores generated revenues of £13.68 million and net profits of £0.05 million. Five of the stores are freehold properties, with a combined value of £0.54 million, and the remainder are leasehold.
Conviviality chief executive Diana Hunter said: “This acquisition in entirely in line with our strategy for geographic expansion. The 26 stores provide opportunities for us to extend our reach into Yorkshire, offering growth opportunities for the company and our franchisees. The 26 stores provide opportunities to expand our Bargain Booze, Select Convenience and Wine Rack fascias.”
