Coventry jobs at risk as Palmer & Harvey teeters on brink of administration

[dutchman]

The cigarette wholesaler has a large warehouse in Dolomite Avenue, Coventry



Cigarette supplier Palmer & Harvey is on the brink of administration despite weeks of crunch takeover talks, according to reports.

Advisers to P&H are preparing for the worst, with one source saying the firm may have already filed a notice of intention to appoint administrators.

PwC was said to be ready to handle an administration process, Sky News is reporting.

The cigarette wholesaler employs 4,000 people and supplies tobacco products to Tesco and other major retailers.

The company has a large warehouse in Dolomite Avenue, in Canley, Coventry.

It is understood it had been hit by a working capital issue but it was hoped a rescue deal could be salvaged.

P&H and private equity firm Carlyle Group Carlyle began exclusive talks last month and were expected to announce a deal soon.

The collapse of P&H could cause thousands of jobs losses and break down some parts of the grocery retail industry during the key Christmas trading period. Tobacco firms have reportedly lined up contingency plans to deal with the collapse of P&H.

P&H and PwC declined to comment while Carlyle Group has not yet commented.

[rebbonk]

[dutchman]

Ninety per cent of Palmer & Harvey staff in Coventry made redundant a month before Christmas



Hundreds of staff at the Coventry branch of wholesaler Palmer & Harvey (P&H) have been made redundant weeks before Christmas after the firm went into administration.

It has been confirmed that 350 of the 400 staff who worked at the Coventry operation in Dolomite Avenue, Canley , have lost their jobs.

Yesterday it was revealed 2,500 of Palmer & Harvey’s 3,400 UK staff were made redundant after financial advisors PwC were appointed as administrators.

PwC announced the immediate redundancies at the firm’s head office and 14 branches (which include Coventry), with 900 staff remaining at risk.

Staff at the firm’s Coventry operation now face the prospect of a grim Christmas.

The Telegraph was told of at least one worker who was on holiday yesterday and unaware he had been made redundant.

Movement in and out of P&H’s Dolomite Avenue site was minimal this morning.

A few cars were seen entering the site and a few leaving but no one wished to speak to the Telegraph.

There were some lights on in the offices and an HGV arriving at the gated entrance to the site attempted to enter but then left.

It is understood that staff who remained at the business are helping PwC in the administration process.

It always seems to happen just before Xmas doesn't it?