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Conviviality has announced its CEO Diana Hunter has stepped down with immediate effect as its struggles stay afloat following the late discovery of a £30m tax bill.
In a statement the off-licence retailer said Hunter will remain with the company for a period to provide transition support, and non-executive chairman David Adams will replace her until further notice.
Conviviality revealed last week it was mulling the “possibility of an equity fundraise to effect a recapitalisation of the business” after finding a hitherto unnoticed £30m bill from HMRC to be paid with just two weeks before the deadline.
In the statement announcing Hunter’s departure, Conviviality said: “The company is continuing to engage with stakeholders as set out in the announcement of Friday 16 March and will provide a further update in due course.”
The discovery was made on the 13 March and had not been accounted for in Conviviality’s short-term cash flow projections. As a result there was a suspension of its shares on the junior market and the cancellation of an £8m dividend payment planned for shareholders.
Conviviality has also appointed the PwC to assist discussions with HRMC and key stakeholders.
