Hundreds of jobs hit by P&H administration
Hundreds of jobs in Coventry are under threat after P&H, the largest wholesaler for the UK convenience market, went into administration.
Administrators immediately cut 2,500 jobs across the UK, leaving just 900 people in the business. This will affect staff at its head office and across its 14 regional sites, including at its large depot in Coventry. The remaining employees will assist the joint administrators in managing the closure of the business.
Its 90,000 customers range from small local corner stores to the UK’s largest supermarkets and its distribution centres supply up to 12,000 product lines. P&H Direct provide product delivery services to independent retailers and food outlets.
The group has been by hit by challenging trading conditions in recent months and efforts to restructure the business have been unsuccessful. This has resulted in cash flow pressures and it has not been possible to secure additional funding to support the business.
Matthew Callaghan, Ian Green and Zelf Hussein of PwC were appointed joint administrators. They are continuing to explore options for a sale. In the meantime, the business has ceased to trade.
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 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 administrators are working closely with employees affected by the closure of the business to ensure they receive the support they need during this difficult time to assist with their claims for redundancy and other compensatory payments. Our priority is to ensure that all employees made redundant are assisted in processing their claims with immediate effect. We will be circulating correspondence to all staff as soon as possible which will outline the support available to complete redundancy payment forms.”
