Palmer and Harvey

Last updated

Palmer and Harvey plc
Type Private
Employee Owned
Industry
Founded1925;98 years ago (1925)
Defunct2017 (2017)
Headquarters
P&H House, 106–112 Davigdor Road, Hove, East Sussex
,
England
Area served
United Kingdom
Key people
£34 million [ when? ][ citation needed ]
Number of employees
3,400 [ citation needed ]
Subsidiaries Mace
Website www.palmerharvey.co.uk

Palmer and Harvey plc (also known as P&H, formerly Palmer & Harvey McLane plc) was a UK-based wholesaler that serviced the multiples and convenience sectors.

Contents

Headquartered in Hove, East Sussex, and privately owned, it was the UK's largest delivered wholesaler, and the 5th largest private company in the UK. [1] It has an integrated national distribution network across 14 sites in the UK. The company was founded in 1925 as a traditional confectionery and tobacco wholesaler. Palmer and Harvey has been the UK's largest wholesaler working with a diverse range of 90,000 retailers.

On 28 November 2017, Palmer and Harvey fell into administration, with the immediate loss of 2,500 jobs, due in part to low profit margins and problems with working capital. A small number of staff were temporarily retained to assist in the orderly closure of the business. [1] [2]

Business divisions

Palmer and Harvey had four business platforms: Distribution, Multiple Retail, Independent Retail and Wholesale. Each is aimed at the needs of a broad client base, supplying customers with a range of produce from fresh sandwiches to shoelaces. [3]

Palmer and Harvey Wholesale and Distribution

Palmer and Harvey Wholesale and Distribution was the UK's largest wholesale distributor, supplying ambient, grocery, chilled and frozen foods, health and home products to a diverse range of retail outlets, including supermarkets, multiple forecourts and convenience store operators. Palmer and Harvey's customer base included Costcutter, Esso, Royal Dutch Shell, Total, Welcome Break, Moto and the grocery multiples Tesco and Sainsbury's. The company had grown significantly in 1968 with the purchase of part of the loss making wholesaling business of Cavenham Foods. [4] [5]

The loss of the partnership distribution contract for convenience chain McColl's (MMRG) to Morrisons in 2017 brought about the collapse of the Palmer & Harvey into Administration. [6]

Palmer and Harvey Retail Services

Palmer and Harvey owns WS Retail, a symbol group that operates under the Central Stores banner. The group is based in Ringwood, Hampshire.

Palmer and Harvey Direct Ltd

Palmer and Harvey Direct Ltd offers more than 50,000 smaller retailers an opportunity to buy from a range of products through the direct-to-door van delivery services P&H Snacksdirect, P&H Sweetdirect and P&H Direct.

Company history

Palmer and Harvey underwent management buy outs in 2002 and 2008, the latter led by Chief Executive Chris Etherington in a deal which valued the business at £330m. The equity of Palmer and Harvey is held by current and former employees. Since 2008 almost £77 million was paid to senior employees before the company collapsed with debts of £65 million. Chris Etherington has faced calls to repay a £3.4 million loan he received from the company that would only normally be repayable if he sold his (now worthless) shares in the business. The failed company has a pension fund with a deficit of £80 million. The Sunday Times quoted PricewaterhouseCoopers as saying: “In line with their statutory responsibilities, the administrators will investigate the circumstances leading to the failure of the business in due course.” [7] [8] [9]

Company timeline

P&H House, the company's headquarters in Hove P&H House, 106-112 Davigdor Road, Hove (July 2014).JPG
P&H House, the company's headquarters in Hove

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References

  1. 1 2 3 "Wholesaler Palmer and Harvey fails with 2,500 jobs lost". BBC News. 28 November 2017.
  2. 1 2 Ashley Armstrong (28 November 2017). "2,500 jobs lost as wholesaler Palmer & Harvey collapses into administration". The Daily Telegraph.
  3. Beth Brooks (4 September 2010). "P&H; 'stronger' despite a slight drop in profits". The Grocer (subscription required). Archived from the original on 3 March 2017.
  4. "Cavenham Warnings on Deal Effects". Financial Times=10 December 1967.
  5. Wansell, G (1987). Tycoon: the Life of James Goldsmith. p. 134. ISBN   0-246-12921-2.
  6. Emma Simpson, Business Correspondent (6 May 2022). "Morrisons makes last minute bid to save McColl's". BBC News . Retrieved 6 May 2022.{{cite web}}: |author= has generic name (help)
  7. Frank le Duc. "Palmer and Harvey chief's £3.4m loan prompts fresh questions over Hove wholesaler's collapse".
  8. Alex Ralph. "Frank Field calls on PWC for clawback of loan by failed wholesaler Palmer & Harvey".
  9. Sarah Butler. "Palmer & Harvey's pension deficit balloons to £80m".
  10. William Kay (9 July 1994). "Profile: A multi-storey monopolist: Sir Don Gosling" . The Independent. Archived from the original on 24 May 2022.
  11. Elinor Zuke. "Margins 'given away' as top wholesalers toil". The Grocer. Archived from the original on 4 March 2016.
  12. James Hall (10 October 2011). "Misery for motorists as number of petrol stations halves". The Telegraph.
  13. Beth Brooks (20 April 2012). "P&H snaps up Pepsi's wholesale operation". The Grocer (subscription required).