LONDON (Reuters) - Drinks wholesaler Conviviality, which earlier this week revealed it had neglected to allow for a 30 million pounds tax bill in its cash flow forecast, said on Friday it was considering raising new equity.

Conviviality is Britain's largest franchised off-licence and convenience chain. Its franchisees operate more than 700 stores trading under the Bargain Booze and Wine Rack brands.

The group said on Wednesday the tax bill was due on March 29 and it was in urgent talks with its banks about funding, assisted by consultants PwC. It also cancelled an interim dividend that was due to be paid on March 16 to save 8.2 million pounds and its shares were suspended from trading.

Those developments followed a profit warning last week when it said core earnings for the 2017-18 financial year would be 20 percent below market expectations, reflecting a 5.2 million pounds "arithmetic error" and a softening in margins.

"The company is engaging with its advisers and broker regarding the possibility of an equity fundraise to effect a recapitalisation of the business," Conviviality said on Friday.

It said it had had constructive discussions with its lenders, which were ongoing.

The firm is also in talks with Britain's HM Revenues and Customs tax office. "HMRC has been receptive to our needs and these discussions continue," it said.

Shares in Conviviality were suspended at 101.2 pence, valuing the business at 185 million pounds. The stock has lost 75 percent of its value so far this year.

(Reporting by James Davey; Editing by Mark Potter)