Palmer and Harvey

Palmer and Harvey, commonly known as P&H, was a major British wholesale and distribution business serving the convenience, multiple-retail and forecourt sectors. The company originated in 1925, when Archie Stone acquired two North London wholesale businesses associated with the Palmer and Harvey names and combined them. It initially operated as a traditional confectionery and tobacco wholesaler, later expanding into a broad delivered-distribution model covering ambient groceries, chilled and frozen foods, health and home products, tobacco, confectionery, alcohol-related categories and various convenience-store lines. Over several decades, Palmer and Harvey grew through acquisitions, management buyouts, new distribution contracts and the development of symbol-group and direct-delivery services. Its expansion included the acquisition of the United Kingdom operation of McLane in 1994, Mojo Cash & Carry, Snowking Foods, Winerite, Booker Wholesale Foods and several regional delivered wholesalers. The company also expanded its depot network and fleet, eventually operating an integrated national distribution network across 14 United Kingdom sites. At its height, it described itself as the country's largest delivered wholesaler and served a wide base of convenience stores, supermarkets, petrol stations, travel outlets and other retail businesses. The business was organized around four broad platforms: wholesale and distribution, multiple retail, independent retail and wholesale services. Its customer relationships included convenience and forecourt operators such as Costcutter, Esso, Shell, Total, Welcome Break and Moto, as well as grocery groups including Tesco and Sainsbury's in selected supply arrangements. Through WS Retail, it operated the Central Stores symbol-group business. Its direct-to-store services included P&H Snacksdirect, Sweetdirect and P&H Direct, which used van-based delivery and sales operations to reach smaller retailers. Palmer and Harvey's scale did not translate into consistently strong profitability. The company operated in a low-margin sector while carrying substantial debt and working-capital requirements. Its reported turnover reached approximately £4.2 billion in 2010, but profit was only about £227,000 that year. In 2016, it reportedly generated £618,000 of earnings on sales of approximately £2.5 billion. The loss of a major distribution partnership with McColl's in 2017, when the contract moved to Morrisons, intensified the pressure on the business. Attempts to arrange a rescue involving tobacco suppliers and discussions concerning a possible Carlyle investment did not produce a viable solution. On 28 November 2017, Palmer and Harvey entered administration. The collapse immediately put approximately 2,500 jobs at risk or led to their loss. A limited number of employees were retained temporarily to support the orderly closure of the company. The failure also left significant obligations, including reported debts of about £65 million and a pension-fund deficit reported at approximately £80 million. Palmer and Harvey subsequently ceased trading, ending one of the United Kingdom's longest-established independent wholesale-distribution businesses.

Palmer and Harvey was established in 1925 by Archie Stone, who brought together two North London wholesale businesses associated with the Palmer and Harvey names. The original business concentrated on confectionery and tobacco, but it gradually developed into a broader delivered-wholesale operation serving retailers throughout the United Kingdom. The company expanded through both organic growth and acquisitions. Don Gosling became a director in 1959 through his marriage into the Ingram family, which owned Palmer and Harvey interests. The business experienced changes in control and management during the following decades. In 1968 it strengthened its position by acquiring part of the loss-making wholesaling operations of Cavenham Foods. In 1994 it acquired McLane's United Kingdom operation. Further acquisitions followed, including Mojo Cash & Carry, Snowking Foods, Winerite and Booker Wholesale Foods. These transactions broadened the company's product range, geographic coverage and access to symbol-group retailing. During the late 1990s and 2000s, Palmer and Harvey developed an increasingly sophisticated distribution platform. It launched the Pro Retail trade show and the Your Store retail proposition, acquired or expanded regional depots, and secured supply and distribution arrangements with retailers and forecourt operators. Its customer and contract base included businesses connected with Esso, Shell, Sainsbury's petrol stations, Costcutter, Northcliffe Retail, Tesco, Sainsbury's, Welcome Break and Moto. The company also expanded its symbol-group presence through Mace-related operations and its Central Stores business. Management buyouts were a recurring feature of the company's ownership history. A further buyout took place in 2002. In 2006 Chris Etherington became chief executive, having joined from Unipart Automotive. Palmer and Harvey acquired T&A Symonds in 2007 and WH & HM Young in 2008, both strengthening its delivered-wholesale presence in regional markets. The 2008 management buyout, led by Etherington, valued the business at approximately £330 million and allocated a substantial shareholding to management and employees. The company later reported turnover of about £4 billion and launched Partnership Plus, a program intended to help independent and symbol-group retailers improve their businesses. The company continued to add direct-selling and retail-support services. Snacksdirect was acquired from KP McVitie's, while Sweetdirect was launched in 2009 to sell confectionery and related products through a direct-to-store van operation. In 2012 Palmer and Harvey acquired the Walkers van-sales operation. Its wholesale and distribution division supplied products ranging from ambient, chilled and frozen foods to health, home and convenience lines. Its direct services offered tens of thousands of smaller retailers access to a broad product portfolio. Despite its size, Palmer and Harvey operated under severe structural pressure. Wholesale distribution is a high-volume, low-margin business requiring significant inventory and working capital. The company reported record sales of approximately £4.2 billion in 2010, but profit fell by half to roughly £227,000. Later reporting indicated that 2016 earnings were approximately £618,000 on sales of around £2.5 billion. Debt, pension liabilities and the costs of maintaining a large national network further weakened its position. In 2017, Palmer and Harvey sought support from major tobacco suppliers and held discussions with Carlyle concerning a possible investment or takeover. The loss of its McColl's distribution contract to Morrisons removed an important source of business and aggravated its financial problems. On 28 November 2017, the company entered administration. Around 2,500 jobs were affected immediately, with a limited number of employees retained to assist administrators in winding down operations. Reported liabilities included approximately £65 million of debt and an £80 million pension deficit. The company ceased trading after the administration process.

• 2017

  Administration and closure

  [1]Palmer and Harveyen.wikipedia.org

  The company entered administration on 28 November after losing the McColl's distribution contract and experiencing debt, margin and working-capital problems.

• 2012

  Walkers van-sales operation acquired

  [1]Palmer and Harveyen.wikipedia.org

  Palmer and Harvey acquired the Walkers van-sales operation, extending its direct-delivery capabilities.

• 2010

  Record reported sales

  [1]Palmer and Harveyen.wikipedia.org

  Palmer and Harvey reported sales of approximately £4.2 billion, although profit was only about £227,000.

• 2009

  Sweetdirect launched

  [1]Palmer and Harveyen.wikipedia.org

  The company introduced Sweetdirect, a van-based direct-to-store confectionery sales service.

• 2008

  Large-scale management buyout

  [1]Palmer and Harveyen.wikipedia.org

  A management buyout led by Chris Etherington valued the company at approximately £330 million and gave management and employees a substantial equity interest.

• 2006

  Chris Etherington becomes chief executive

  [1]Palmer and Harveyen.wikipedia.org

  Chris Etherington was appointed chief executive, and the company won a major Northcliffe Retail supply contract.

• 2002

  Management buyout

  [1]Palmer and Harveyen.wikipedia.org

  The company completed another management buyout as part of its changing ownership structure.

• 1998

  Pro Retail and Winerite expansion

  [1]Palmer and Harveyen.wikipedia.org

  Palmer and Harvey launched the Pro Retail trade show and acquired Yorkshire drinks wholesaler Winerite.

• 1994

  McLane UK acquired

  [1]Palmer and Harveyen.wikipedia.org

  The company acquired the United Kingdom offshoot of the United States wholesaler McLane.

• 1968

  Expansion through Cavenham Foods assets

  [1]Palmer and Harveyen.wikipedia.org

  Palmer and Harvey purchased part of Cavenham Foods' loss-making wholesaling business, accelerating its expansion.

• 1925

  Business founded

  [1]Palmer and Harveyen.wikipedia.org

  Archie Stone merged two North London wholesale businesses associated with the Palmer and Harvey names, creating the original confectionery and tobacco wholesaler.

A national, delivered wholesale partner for independent retailers, symbol groups, supermarkets, petrol stations and travel-sector operators, combining broad product range, depot logistics, van sales and retail-support services.

• Wholesale distribution

  P&H Wholesale and Distribution

  The core business supplied ambient grocery, chilled and frozen food, tobacco, confectionery, health, home and other convenience products to supermarkets, forecourts, convenience chains, symbol groups and travel retailers. Its national depot and transport network supported delivered wholesale at substantial scale.

• Direct-to-store distribution

  P&H Snacksdirect

  A van-based direct sales and delivery service aimed at smaller retailers. It gave stores access to snack and convenience products without relying solely on conventional depot ordering.

• Confectionery distribution · 2009

  P&H Sweetdirect

  Launched in 2009, Sweetdirect used direct-to-store van sales to distribute confectionery and related products from suppliers including Perfetti Van Melle, Tangerine Confectionery, Lindt and Bon Bon Buddies.

• Direct-to-store distribution

  P&H Direct

  A direct-to-door service intended to help smaller retailers purchase from Palmer and Harvey's wider product range through van delivery and sales operations.

• Symbol-group retail

  Central Stores

  The Central Stores banner was operated through WS Retail, a Palmer and Harvey retail-services business. It provided an affiliated retail identity and support structure for participating independent stores.

• Retail support services · 2008

  Partnership Plus

  Introduced as a tailored business-growth initiative for independent and symbol-group retailers, Partnership Plus complemented product supply with commercial and operational support.

• 2017

  Collapse, executive payments and pension deficit

  After Palmer and Harvey entered administration, reporting highlighted approximately £65 million of debt, an estimated £80 million pension deficit and allegations that around £77 million had been paid to senior employees after the 2008 buyout. Former chief executive Chris Etherington also faced calls to repay a reported £3.4 million company loan. Administrators were expected to investigate the circumstances of the failure.

  Source

Read more

• 2011Fuel Deserts research

  United Kingdom

  Palmer and Harvey published Fuel Deserts, a research paper examining conditions in the United Kingdom forecourt sector.

  Outcome. The publication positioned the company as a participant in discussion about the future of forecourt retailing.

  Source
• 2008Partnership Plus

  United Kingdom

  The company introduced Partnership Plus to provide independent and symbol-group retailers with a tailored business-growth package.

  Outcome. The initiative broadened Palmer and Harvey's role from product distributor to retail-support partner.

  Source
• 1998Pro Retail

  United Kingdom

  Palmer and Harvey launched Pro Retail as an annual trade show connecting the wholesaler, suppliers and retail customers.

  Outcome. It became part of the company's trade-facing retail-support and supplier-engagement activities.

  Source

• 2017

  Seek rescue financingStrategy

  Background

  The company faced low margins, high debt, working-capital pressure and the loss of the McColl's distribution contract.

  Action taken

  Palmer and Harvey pursued discussions with Imperial Tobacco, JTI and the Carlyle Group regarding rescue support or an equity transaction.

  Aftermath

  No viable rescue was completed, and the company entered administration on 28 November 2017.

  Source

• 2017

  Enter administrationOther

  Background

  The business could not overcome the loss of a major contract and its financial and operational pressures.

  Action taken

  Palmer and Harvey entered administration and began an orderly closure process.

  Aftermath

  Approximately 2,500 jobs were affected, with a small number of staff temporarily retained. The company subsequently ceased trading.

  Source

• 2009

  Launch SweetdirectProduct launch

  Background

  Smaller retailers needed convenient access to confectionery products and direct replenishment.

  Action taken

  Palmer and Harvey launched a direct-to-store van-sales operation for confectionery and related products.

  Aftermath

  Sweetdirect became one of the company's direct retail-delivery services until the wider business ceased trading.

  Source

• 2008

  Employee and management-led buyoutStrategy

  Background

  The company was reorganizing ownership while expanding its delivered-wholesale operations.

  Action taken

  A buyout led by Chris Etherington valued the business at approximately £330 million and offered 50% of its shares to management and employees.

  Aftermath

  Current and former employees held the equity, but later financial pressure left the shares effectively worthless after the collapse.

  Transaction valuation. £330 million (2008)

  Source

• 1994

  Acquire McLane UKM&A

  Background

  Palmer and Harvey sought to enlarge its wholesale-distribution footprint and capabilities.

  Action taken

  It acquired the United Kingdom offshoot of McLane.

  Aftermath

  The transaction contributed to the company's broader national distribution platform.

  Source

1. 1Palmer and Harveyen.wikipedia.org