A raft of fund managers stand to lose out as Bargain Booze owner Conviviality (CVRC) said it intended to appoint administrators within 10 days 'unless circumstances change'.

Just before Easter the drinks retailer, which also owns Wine Rack, said it failed to raise £125 million from investors to resolve a cash crisis. This had been caused by 'an arithmetic error', which meant a £30 million tax bill was not accounted for and profit forecasts had been overstated by £5.2 million.

Conviviality also highlighted margin pressure within its wholesale business. After two profit warnings, shares in the Alternative Investment Market-listed company were suspended on 14 March and remain so.

The board said shareholders were likely to receive 'little-to-nil' value for their shares, which will hurt investors who were unable to sell out before the suspension. They include George Luckraft, manager of the £295.5 million AXA Framlington Monthly Income fund.

Daniel Hanbury represented another backer. At the end of February, 1.9% of his £786.9 million River and Mercantile UK Equity Smaller Companies fund was invested in Conviviality. The team sold down the position during the preceding months and it is understood that they disposed of more shares before the trading suspension was put in place. Nevertheless, they have been left with a residual holding in Conviviality.

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Other investors proved more fortunate: Old Mutual UK Smaller Companies Focus manager Nick Williamson was able to sell his fund's position in Conviviality after the first profit warning. It had previously represented a top 10 position in the portfolio.

Likewise, Downing Monthly Income manager James Lynch sold the fund's 3.3% position in the off-licence business at around 108p per share after the first profit warning.

'Obviously it is disappointing to see another UK firm with a high street presence fail so quickly and dramatically. However, our investment process is such that when the fundamentals of an investment change we take decisive action,' a spokeswoman commented.

Citywire A-rated Fraser Mackersie and Simon Moon feature among the fund managers who held stakes in Conviviality at the end of February. It represented 3.1% of their £688 million Unicorn UK Income and 2.6% of their Acorn Income (AIF) investment trust.

Unicorn Asset Management declined to comment.</s>The owner of Bulmers, Magners and Tennent’s – Dublin-based C&C Group – is to buy the wholesale arm of struggling Bargain Booze owner Conviviality, safeguarding more than 1,800 jobs.

Conviviality is expected to appoint administrators on Wednesday and, ahead of the move, C&C said it planned to buy the Matthew Clark and Bibendum drinks wholesalers for a nominal fee. It will provide funds to support the continued operation of their 18 depots around the country. The deal is dependent on Conviviality going into administration.

Last week Conviviality said investors had refused its request for £125m of new money, which it needed to stave off bankruptcy after a string of shock profit warnings.

The group has since been attempting to find buyers. On Wednesday, Conviviality said it was still is discussions with a number of parties about the sale of its Bargain Booze and Wine Rack retail chains, which employ about 1,800 people.

Shareholders in the company, which has annual sales of £1.6bn, are likely to receive “little-to-nil” value for their shares, which have been suspended on the junior AIM stock market since 14 March after a series of profit warnings.

The first warning was blamed by the company on an erroneous calculation made by a member of its finance team and weakening profit margins. It later admitted it had not budgeted for a £30m tax bill.

Conviviality’s chief executive, Diana Hunter, stepped down after City analysts criticised the company’s financial controls and processes.

The firm is a major player in the UK drinks industry, supplying more than 700 off-licences and serving more than 23,000 pubs and restaurants including the JD Wetherspoon chain, via Bibendum and Matthew Clark, which is the UK’s largest distributor to pubs and restaurants.

C&C Group said it would run the wholesale operation as a separate business.

Stephen Glancey, group chief executive of C&C, said: “We know the Matthew Clark and Bibendum businesses very well. They are great businesses with unparalleled on-trade market access, a wide range of supplier relationships and supported by a knowledgeable and loyal employee base.

“The last few weeks have been challenging for employees, customers and suppliers alike. We hope today’s announcement can put an end to this period of disruption and uncertainty. We look forward to working with our new colleagues and other stakeholders to bring stability and restore the group’s position as one of the leading and most respected drinks suppliers to the UK hospitality sector.”</s>Equities analysts expect Ollie's Bargain Outlet Holdings Inc (NASDAQ:OLLI) to report earnings of $0.49 per share for the current quarter, according to Zacks Investment Research. Four analysts have made estimates for Ollie's Bargain Outlet’s earnings. The lowest EPS estimate is $0.48 and the highest is $0.52. Ollie's Bargain Outlet posted earnings per share of $0.39 during the same quarter last year, which would suggest a positive year over year growth rate of 25.6%. The company is expected to issue its next earnings results after the market closes on Wednesday, April 4th.

On average, analysts expect that Ollie's Bargain Outlet will report full-year earnings of $1.24 per share for the current year, with EPS estimates ranging from $1.23 to $1.27. For the next year, analysts expect that the business will post earnings of $1.66 per share, with EPS estimates ranging from $1.44 to $1.79. Zacks Investment Research’s EPS calculations are an average based on a survey of research analysts that follow Ollie's Bargain Outlet.

Several brokerages recently commented on OLLI. Bank of America increased their price target on Ollie's Bargain Outlet from $60.00 to $65.00 and gave the company a “buy” rating in a research report on Tuesday, March 13th. Zacks Investment Research cut Ollie's Bargain Outlet from a “buy” rating to a “hold” rating in a research report on Thursday, March 8th. BidaskClub cut Ollie's Bargain Outlet from a “strong-buy” rating to a “buy” rating in a research report on Saturday, March 10th. Jefferies Group increased their price target on Ollie's Bargain Outlet to $57.00 and gave the company a “buy” rating in a research report on Tuesday, December 5th. Finally, Piper Jaffray reissued a “buy” rating and set a $71.00 price target on shares of Ollie's Bargain Outlet in a research report on Tuesday, January 9th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and eight have given a buy rating to the company’s stock. Ollie's Bargain Outlet has an average rating of “Hold” and a consensus target price of $52.54.

Ollie's Bargain Outlet (NASDAQ:OLLI) opened at $58.25 on Friday. Ollie's Bargain Outlet has a 52-week low of $32.15 and a 52-week high of $62.05. The company has a current ratio of 2.53, a quick ratio of 0.36 and a debt-to-equity ratio of 0.16. The company has a market capitalization of $3,591.52, a P/E ratio of 51.55, a P/E/G ratio of 1.50 and a beta of 0.11.

In other Ollie's Bargain Outlet news, Director Thomas Hendrickson sold 9,116 shares of the company’s stock in a transaction that occurred on Friday, January 19th. The stock was sold at an average price of $55.76, for a total value of $508,308.16. Following the sale, the director now owns 1,233 shares in the company, valued at $68,752.08. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO John W. Swygert sold 60,000 shares of the company’s stock in a transaction that occurred on Tuesday, January 2nd. The shares were sold at an average price of $52.20, for a total value of $3,132,000.00. The disclosure for this sale can be found here. Insiders sold 155,742 shares of company stock worth $8,699,718 in the last 90 days. Corporate insiders own 22.25% of the company’s stock.

A number of large investors have recently added to or reduced their stakes in OLLI. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in Ollie's Bargain Outlet by 50.1% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,972 shares of the company’s stock valued at $158,000 after buying an additional 992 shares during the period. Royal Bank of Canada raised its stake in Ollie's Bargain Outlet by 302.7% in the second quarter. Royal Bank of Canada now owns 4,257 shares of the company’s stock valued at $182,000 after buying an additional 3,200 shares during the period. Navellier & Associates Inc bought a new stake in Ollie's Bargain Outlet in the fourth quarter valued at approximately $201,000. First Heartland Consultants Inc. bought a new position in shares of Ollie's Bargain Outlet during the third quarter worth approximately $207,000. Finally, Shelton Capital Management bought a new position in shares of Ollie's Bargain Outlet during the third quarter worth approximately $213,000. Hedge funds and other institutional investors own 91.77% of the company’s stock.

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Ollie’s Bargain Outlet Holdings, Inc is a retailer of brand name merchandise. The Company offers customers a selection of brand name products, including food, housewares, books and stationery, bed and bath, floor coverings, electronics and toys. Its warehouse format stores feature a range of products, including hardware, personal healthcare, candy, clothing, sporting goods, pet and lawn and garden products.

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UK retailer Conviviality, owner of Bargain Booze, says it intends to appoint administrators within ten days.