Supplier Trading Update: Matthew ClarkWritten by Laura Haslin
Matthew Clark’s parent company, Conviviality PLC, made the headlines last month when it was revealed they had a £30m tax bill that had to be paid by the end of the month and they subsequently entered discussions with its lenders and looked at raising funds on the stock market. By 28th March, Conviviality announced its intention to call in the administrators as efforts to raise £125m from shareholders had failed.
In his letter dated 16th March, James Lousada, MCW’s Commercial Director, stated that the fundamentals of the business were strong and that MCW remained a profitable business. Click here to view this letter.
Matthew Clark advised TUCO on 29th March that the full £125m funding had not been raised and the Board was looking at other options however it has been announced this morning (4th April) that C&C Group are to buy Bibendum and Matthew Clark: C&C Group has announced, that with the support of AB InBev, it is in advanced discussions to acquire the entire issued share capital of Matthew Clark (Holdings) Limited and Bibendum PLB (Topco) Limited and their subsidiary businesses Catalyst, Peppermint, Elastic and Walker & Wodehouse. Matthew Clark Bibendum will be run as a separate business and C&C management believe the combination with C&C will: create the leading independent route-to-market network across the British Isles, alongside C&C’s existing drinks wholesaling businesses in the UK and Ireland; Stephen Glancey, group chief executive, 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.”
Coca-Cola European Partners (CCEP), who use Matthew Clark as their route to market, stated that there isn’t any change to this following the recent news. CCEP are continuing to work with MCW and have deliveries going in to them unless there is a material change. CCEP are continuing with their plans for a permanent solution which they hope to be able to update members on soon.
TUCO continue to work with Matthew Clark and CCEP to ensure stock is available for members.