Operator of Telford event heading towards administration
Around 4,000 jobs could be put at risk as a grocery industry wholesaler, which runs a major retail event in Telford, reportedly edges towards administration.
Professional services firm PwC is said to be poised to tackle the administration process for Palmer & Harvey, despite the company revealing in October that it had entered exclusive takeover talks with the Carlyle Group.
The US private equity fund was looking to snap up a controlling stake in P&H in exchange for a significant capital investment, but attempts to secure a tie-up are said to be fading.
P&H, the UK's biggest supplier of cigarettes, employs 4,000 people and provides alcohol, groceries and frozen food to 90,000 retail accounts, including Tesco.
It also runs the annual Pro Retail event at Telford's International Centre, a major retail industry showcase which brings thousands of businesspeople to the town.
The privately-owned group has been working with stakeholders Imperial Brands and Japan Tobacco International as it searches for relief from thin profit margins and a substantial debt burden.
The move comes amid a period of consolidation within the grocery sector, with Tesco agreeing a £3.7 billion deal with food wholesaler Booker, while Nisa Retail has sealed a takeover from the Co-op.
