Costcutter owner Bibby Retail Services has confirmed it plans to sell off its entire Rhythm & Booze estate to focus on its core convenience fascias.
Bibby, which this week sold 26 stores to Conviviality Retail, said the off-licence chain would “no longer form part of the future strategic plans for Bibby Retail Services”, adding it would “continue to explore strategic options” for the 25 remaining stores.
“Following a review we have come to the conclusion that we want to focus on our core of convenience, where we see great opportunities to grow, together with our members,” said Costcutter chief executive Darcy Willson-Rymer.
“We are delighted to find a solution to sell a number of these stores to a buyer who intends to retain all employees involved,” she added.
Industry insiders had previously told The Grocer that Bibby had been “desperate” to sell Rhythm & Booze because it didn’t fit with the group’s wider strategy as it focuses on its Buyco joint venture with P&H.
Bibby bought the off-licence chain out of administration in 2012 and sources said it had been a “drain on profits”.
Conviviality Retail revealed on Tuesday that it had acquired the 26 stores for £1.7m, of which £0.2m was ‘deferred consideration’.
“The 26 stores provide opportunities for us to extend our reach into Yorkshire,” said Conviviality Retail chief executive Diana Hunter. “The stores provide opportunities to expand our Bargain Booze, Select Convenience and wine Rack fascias.”
The acquisition is set to be completed on 16 May. Conviviality will rebrand the estate but retain store staff.
It is the second acquisition in eight months for Conviviality, which bought 22-store off-licence chain Wine Rack for £1.65m in September.
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