Drinks chain for sale at £100m

BARGAIN Booze, operator of 500 discount off-licences, has been put up for sale by its private equity owner Electra in a move that could raise £100m.

Electra has appointed investment bank Rothschild to find a buyer. Electra took control of Bargain Booze in 2002 when it backed the £141m management buyout of convenience stores group BWG from drinks giant Pernod Ricard.

BWG then owned 301 Bargain Booze outlets, but the chain has expanded rapidly since the buyout and the company now runs a franchise operation of more than 500 retail outlets across three different brands - Bargain Booze, Bargain Booze Plus and Thorougoods.

Bargain Booze outlets are dedicated off-licences while the larger Bargain Booze Plus shops also sell convenience goods. Thorougoods are small neighbourhood convenience and newsagent stores selling a limited range of alcohol.