More jobs misery for Fife as distribution firm closes

There was more misery for Fife workers as a major distribution firm announced 151 redundancies in Dunfermline.

Palmer and Harvey McLane Limited, which supplies tobacco products to retailers, has kept on just 31 workers at its Scottish depot in Pitreavie Business Park after going into administration.

Staff have been told they will be paid wages for November.

The Union of Shop, Distributive and Allied Workers (Usdaw) said it was seeking a meeting with administrators PricewaterhouseCoopers (PwC) to clarify the implications for its members.

Usdaw national officer Mark Todd said: “Today’s announcement is a massive shock to our members and is an extremely distressing situation for all concerned, especially in the run up to Christmas. We will of course be doing everything possible to protect our members’ interests going forward.”

Palmer and Harvey Group, which had a 3,400-strong workforce, has slashed 2,500 jobs across the UK. Those left will assist the joint administrators in winding up the business.

Matthew Callaghan, joint administrator and PwC partner, said: “The company has insufficient cash resources to continue to trade beyond the short term and the directors have concluded that there is no longer any reasonable prospect of a sale.

“The administrators are working closely with employees affected by the closure of the business to ensure they receive the support they need during this difficult time to assist with their claims for redundancy and other compensatory payments.”

Insufficient cash resources to continue