Bibby Line Group is in talks with Conviviality Retail over the sale of off-licence chain Rhythm & Booze, The Grocer understands.
According to senior industry sources, Bargain Booze has entered talks with the Costcutter owner over plans to acquire the brand and at least 20 of its stores.
Bibby snapped up Rhythm & Booze two years ago for an undisclosed sum after it fell into administration, but insiders said the group was disappointed with its performance and was seeking to offload the chain to focus on its other retail brands.
“It didn’t fit in with the group’s wider strategy as it focuses on The Buyco,” said one source. “It’s been a drain on their profits - they are losing a lot of money. They’ll be selling it for a knockdown price.”
Another claimed Bibby was “desperate to sell it”.
Bibby bought the 68 store off-licence chain in August 2012 and said it would look to franchise stores to retailers. There are currently around 50 stores trading as Rhythm & Booze.
Both Bibby and Conviviality Retail declined to comment.