Failed P&H paid £70m in dividends

WHOLESALER Palmer & Harvey has paid out more than £70m in dividends since 2009, despite racking up more than £48m in debt, culminating in its collapse into administration this week.

According to Companies House, P&H was paying more than £8m a year in cash to holders of its A and B preference shares, through dividends and redemptions.

These holders largely comprised former directors, with a large chunk held by Christopher Adams, P&H’S former chairman.

The cash was paid out regardless of whether P&H posted an annual loss, which it did each year apart from 2014. In its most recent financial year, it made a loss of £9.4m. The news is likely to spark a backlash from the 2,500 employees who lost their jobs on Tuesday. A further 900 jobs are still at risk.

Administrator PWC did not reply to a request for comment last night. It had previously said P&H was hit by “challenging trading conditions and efforts to restructure the business have been unsuccessful”.