Conviviality plc is to appoint administrators within the next fortnight after failing to raise the £125m it required to save the business.

The Bargain Booze owner will continue to trade in the meantime ”in order to preserve as much value as possible for all stakeholders” ahead of a potential sale of all or parts of the business, for which it has received a number of enquiries.

The secured creditors can, however, appoint administrators without the requirement for notice.

The news follows the recent resignation of chief executive Diana Hunter. Earlier this month, the company slashed its profit forecast by 20% and revealed an outstanding tax bill of £30m, caused by a ’material error’. The £30m tax bill was due today (29 March).

The shares of Conviviality Plc remain suspended pending further notice.