Palmer & Harvey goes into administration
Wholesaler Palmer and Harvey has gone into administration with the immediate loss of 2,500 jobs at the head office and branch network.
Administrators from PwC said the group had been by hit by challenging trading conditions in recent months and efforts to restructure the business have been unsuccessful. This had resulted in cash flow pressures and it has not been possible to secure additional funding to support the business.
Palmer & Harvey McLane Limited is the UK’s largest delivered wholesaler to the UK convenience market. It has around 90,000 customers ranging from small local corner stores to the UK’s largest supermarkets.
It operates a delivery network of 14 regional distribution centres which supplies up to 12,000 product lines. P&H Direct Limited provide product delivery services to independent retailers and food outlets.
One group business, WS Retail Limited, has not been placed into administration and continues to trade as normal.
The administrators hope to sell P&H Direct Van Sales Limited, P&H Sweetdirect Limited and P&H Snacksdirect Limited, all subsidiaries of Palmer & Harvey McLane (Holdings) Ltd.
The group employed a total of some 3,400 employees. The administrators said some 2,500 people had been made redundant. “The remaining employees will assist the joint administrators in managing the activities of the business to an orderly closure. Currently 450 employees have been retained within the wholesale business.”
Palmer and Harvey had been in takeover talks with private equity firm, The Carlyle Group. This would include Carlyle taking control of the equity of Palmer & Harvey McLane (Holdings) Limited. The directors of the company decided to call in the administrators following the failure of these talks.
Matthew Callaghan, joint administrator and PwC partner, said: “The P&H Group has faced a challenging trading environment, and the need for significant restructuring has been recognised for some while. The company has insufficient cash resources to continue to trade beyond the short term and the directors have concluded that there is no longer any reasonable prospect of a sale. Therefore, the directors have had no choice but appoint administrators.”
The companies in administration are:
- Palmer & Harvey (Holdings) PLC;
- Palmer & Harvey McLane Limited;
- Palmer & Harvey McLane (Holdings) Limited;
- P&H (1925) Limited;
- P&H Direct Van Sales Limited;
- P&H Sweetdirect Limited;
- P&H Direct Limited; and
- P&H Snacksdirect Limited