PwC to wind up Fife distribution firm with loss of 2,500 jobs after sale hopes collapse

Around 2,500 of Fife distribution firm Palmer & Harvey’s 3,400 UK staff, including 151 at its Dunfermline base, have lost their jobs with immediate effect, joint administrators at PwC have confirmed.

Hopes that a buyer for the business, which had been the UK’s largest tobacco supplier and provided about 12,000 products from alcohol to chilled and frozen foods, evaporated on Tuesday leaving it reliant on the support of secured creditors to meet the November payroll.

Directors of the firm had been in takeover talks with private equity firm Carlyle when they had been left with insufficient cash to continue to trade beyond the short-term after being hit by challenging trading conditions.

They have now said there is no reasonable prospect of a sale.

Administrators at PwC said 450 employees would be kept on to run the business, which supplies 90,000 supermarkets and corner stores across Britain.

Only 31 of the 182 staff employed by the firm at Pitreavie Business Park in Fife have been kept on, with the remaining employees expected to help joint administrators bring the business to an orderly closure.

Matthew Callaghan, joint administrator and PwC partner, said: “The Palmer & Harvey name has been a trusted partner for retailers and suppliers for nearly 100 years.

“This is a devastating blow for everyone who has been involved in the business.

“The administration team will focus on working with employees, clients and suppliers to facilitate a smooth and effective wind-down or transfer of operations over the next few weeks.

“We will be circulating correspondence to all staff as soon as possible which will outline the support available to complete redundancy payment forms.”

SNP MSP Shirley-Anne Somerville said: “I will be meeting with the Minister for Business, Innovation and Energy, Paul Wheelhouse MSP, later this week to discuss the situation in West Fife and will seek further details about what support the PACE Team can bring to assist workers in the area.”