Crewe-based alcohol wholesaler and distributor Conviviality Plc — which owns Bargain Booze and Wine Rack — said on Friday it is in talks with its advisers and broker “regarding the possibility of an equity fundraise to effect a recapitalisation of the business.”

Shares of Conviviality were temporarily suspended on Wednesday as it announced that a £30 million tax demand left it with a “short term funding requirement.”

Conviviality also said on Wednesday it would cancel the interim dividend of 4.5p per share that was due to be paid on March 16, a move that would improve the firm’s cash provision by £8.2 million.

Wednesday’s announcements were just the latest pieces of recent alarming news from the firm that included a profit warning that sent its shares down 60%.

On Friday, Conviviality said: “Further to the update announcement on 14 March 2018, the company has been actively engaging with its stakeholders while it continues to work through its funding requirements …

“We have had constructive discussions with our lenders which are on-going …

“PwC are undertaking a review of the business and its future finding requirements and this work stream is progressing well …

“The company has engaged with HM Revenues and Customs (HMRC) regarding the £30.0 million payment due on the 29 March 2018. HMRC has been receptive to our needs and these discussions continue …

“The company is engaging with its advisers and broker regarding the possibility of an equity fundraise to effect a recapitalisation of the business.”