2,500 jobs lost at UK's biggest tobacco distributor
BRITAIN'S biggest tobacco distributor, Palmer & Harvey, has gone into administration with 2,500 jobs lost.
2,500 jobs lost as UK tobacco distributor Palmer & Harvey goes into administration
Administrators PwC were appointed after efforts to secure additional funding failed.
Matthew Callaghan, joint administrator and PwC partner, said: "The Palmer & Harvey name has been a trusted partner for retailers and suppliers for nearly 100 years.
"This is a devastating blow for everyone who has been involved in the business.
"The administration team will focus on working with employees, clients and suppliers to facilitate a smooth and effective wind-down or transfer of operations over the next few weeks."
The lay-offs are a "devastating blow" for P&H
he Palmer & Harvey name has been a trusted partner for retailers and suppliers for nearly 100 years. This is a devastating blow for everyone who has been involved in the business.
P&H employs 3,400 people and has 90,000 customers ranging from Tesco to local stores. It had been in takeover talks with private equity group Carlyle.
About 2,500 jobs at head office and the branch network will go immediately. Remaining staff will "assist the administrators in managing the activities of the business to an orderly closure".
One P&H customer, Costcutter Supermarkets, said it was was looking for new suppliers.
"We have activated our contingency plans to provide alternative sources of supply through appropriate regional and national options," a Costcutter spokesman said.
Costcutter supermarkets have now been forced to find a new tobacco supplier
Mark Todd, the national officer of the Union of Shop, Distributive and Allied Workers (Usdaw), said the announcement was a "massive shock to our members and is an extremely distressing situation for all concerned, especially in the run up to Christmas.
"We will of course be doing everything possible to protect our members' interests going forward."