This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-41425678

The article has changed 6 times. There is an RSS feed of changes available.

Version 1 Version 2
Rescue talks for retail supplier Palmer and Harvey Rescue talks for retail supplier Palmer and Harvey
(about 1 hour later)
Tobacco giant Imperial Brands has said it is in talks to save wholesaler Palmer and Harvey, which supplies Tesco and thousands of retail outlets. Talks over the future of major wholesaler Palmer and Harvey are being held with a number of parties.
P&H is the UK's biggest cigarette supplier, and Imperial said it was working "to seek to create a sustainable future" for the company. Reports have been circulating for some weeks that P&H is struggling with debts, and owes substantial sums to its own major suppliers.
As well as cigarettes, P&H supplies 12,000 products, including chilled foods and alcohol. Tobacco giant Imperial Brands said on Thursday it was working "to create a sustainable future" for the company.
It serves major chains, convenience stores and petrol station forecourts. P&H is the UK's biggest cigarette supplier, but also delivers 12,000 products, including food and alcohol.
Reports have been circulating for some weeks that P&H was struggling with debts, and owed substantial sums to its own major suppliers. It supplies about 90,000 outlets around the UK. including major chains, convenience stores, corner shops and petrol station forecourts.
Imperial said: "Further to overnight media speculation, we confirm that we have been working, together with other stakeholders, to seek to create a sustainable future for the UK wholesaler, Palmer & Harvey, with whom we have a close trading relationship." P&H technically has until Saturday to secure its future, the date at which a number of credit lines are due to be repaid.
P&H delivers to 90,000 stores around the UK. However, the company's survival is of high importance to its customers and it is understood the talks are going well.
Rival distributors include Bestway, which serves 100,000 businesses, and Booker, which owns Budgens, Londis and Premier convenience stores and delivers to 94,000 outlets. In its statement, Imperial said: "Further to overnight media speculation, we confirm that we have been working, together with other stakeholders, to seek to create a sustainable future for the UK wholesaler, Palmer & Harvey, with whom we have a close trading relationship."
Competition threat David Gilroy, independent retailer expert at Storeexcel, said H&P was in a tough business: "They make thousands of deliveries to stores every week and making profit from small stores is very difficult and margins are tight.
Booker is in takeover talks with Tesco, a move which would threaten P&H's relationship with the supermarket giant, which is one of its most important clients, with more than 6,000 stores. "There's the cost of vehicles and manpower and the profit yield per route is tricky. There are lots of small drops, the unloading time is 15-20 minutes each stop. It's a delicate balance to make profit like that."
The competition authority, the CMA, is assessing whether the proposed grocery tie-up could reduce choice for shoppers and for small stores supplied by Booker. Tesco-Booker worry
The CMA said that if the deal were to go through, potentially, Booker could offer inferior wholesale terms to the stores it currently supplies, "in order to drive customers to their local Tesco". Rival distributors to P&H include Bestway, which serves 100,000 stores, and Booker, which owns Budgens, Londis and Premier convenience stores, and delivers to 94,000 outlets.
Earlier this year, Booker agreed to be bought by Tesco, a deal that could threaten P&H's relationship with the supermarket giant, which is one of its most important clients.
However, the UK's competition watchdog, the Competition and Markets Authority (CMA), is currently assessing whether the proposed tie-up could reduce choice for shoppers and for small stores supplied by Booker.
The CMA has said that if the deal did go through, there is the possibility that Booker could offer inferior wholesale terms to the stores it currently supplies, "in order to drive customers to their local Tesco".
P&H is the UK's fifth biggest privately owned company. It is owned by its employees, both current and former, and has been in business since 1925.P&H is the UK's fifth biggest privately owned company. It is owned by its employees, both current and former, and has been in business since 1925.