Co-op to supply Costcutter after collapse of P&H
CONVENIENCE store chain Costcutter has struck a wholesale supply deal with the Co-operative Group benefiting around 150 shops here as it moves to fill the hole left by the collapse of Palmer & Harvey (P&H).
Around 30 jobs have been lost at Palmer & Harvey’s Mallusk depot after the group’s administration this week. The jobs of another 17 employees at the site are believed to be at risk. Costcutter Group, which owns Costcutter and SuperShops here, said the Co-op would start supplying its 2,200-strong store network from next spring.
The move will also see the Co-op offer immediate support to Costcutter, while handing its chain of stores the chance to become Co-op franchises.
CSG operates around 150 stores in Northern Ireland, of which 61 are Supershops.
It comes after P&H, one of the UK’s biggest private firms, crashed into administration on Tuesday, sparking 2,500 job losses and putting a further 900 at risk.
Costcutter chief executive Darcy Willson-Rymer said: “With P&H no longer able to supply our stores, we have activated our contingency plans that will see our retailers supported by the Co-op and other suppliers in the run-up to our deal with the Co-op.”
The deal hands further strength to the Co-op, which is pushing through the takeover of grocery group Nisa in a £137.5m deal. The Co-op plans to acquire 100% of the convenience store operator.