Wholesaler Bestway has acquired the retail division of collapsed drinks company Conviviality in a deal worth around £7m.

The division, which formally entered administration on Thursday, comprises high street wine chains Bargain Booze – with 452 stores – Wine Rack, Select Convenience and WS Retail.

In a statement, administrator PWC said: “This deal safeguards the jobs of more than 2,000 employees, ensures franchisees have the ability to continue to trade and creates some much-needed stability for business customers and the sector in general.”

Earlier this week, Magners Cider owner C&C bought Conviviality’s wholesale brands, including Matthew Clark and Bibendum.

Conviviality’s woes surfaced last month when it issued a profit warning and uncovered an outstanding £30m payment due to HMRC.

Days later, chief executive Diana Hunter exited the business, which then filed a notice of intention to appoint administrators after failing to raise the funds it needed to pay off creditors.