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P&H collapse disrupts UK tobacco supply

P&H collapse disrupts UK tobacco supply

Behind every well-stocked retailer is a reliable wholesaler. Or not, as the case may be. Wholesale group Palmer & Harvey has officially moved into administration, confirming 2,500 job losses, despite months of negotiations to save the 90-year-old company. The group supplies 90,000 supermarkets and convenience stores across Britain, making it a viable competitor to the likes of Booker (BOK), which is soon to be taken over by grocer Tesco (TSCO). However, hopes that it would be bought, either by private equity or supported by one of its larger customers have vanished. P&H had previously voiced concerns over the tie-up between Britain’s largest supermarket and Booker on the basis that it might lose it as a customer once the merged entity was finalised. It also warned that the enlarged group would automatically hand Booker access to cheaper supply deals over competitors. 

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