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| Version 4 | Version 5 |
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| Imperial Brands in talks to rescue wholesaler Palmer & Harvey | Imperial Brands in talks to rescue wholesaler Palmer & Harvey |
| (1 day later) | |
| Tobacco firm working on deal to ease debt crisis at UK’s biggest cigarette distributor, which supplies Tesco and other retailers | |
| Julia Kollewe | |
| Thu 28 Sep 2017 22.28 BST | |
| First published on Thu 28 Sep 2017 10.17 BST | |
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| The tobacco firm Imperial Brands is working on a rescue deal for the wholesaler Palmer & Harvey, which supplies tobacco to Tesco and other retailers. | The tobacco firm Imperial Brands is working on a rescue deal for the wholesaler Palmer & Harvey, which supplies tobacco to Tesco and other retailers. |
| Palmer & Harvey is the biggest cigarette supplier in the UK and employs 4,000 people. | Palmer & Harvey is the biggest cigarette supplier in the UK and employs 4,000 people. |
| Imperial and Japan Tobacco International, which were involved in a refinancing round in early April and each gave Palmer & Harvey a £30m loan, are expected to provide enough funding to keep the firm afloat, allowing it to hammer out a rescue deal with Carlyle, a private equity firm. | Imperial and Japan Tobacco International, which were involved in a refinancing round in early April and each gave Palmer & Harvey a £30m loan, are expected to provide enough funding to keep the firm afloat, allowing it to hammer out a rescue deal with Carlyle, a private equity firm. |
| Imperial, maker of Davidoff and Gauloises cigarettes, said in a trading update that it was working with others to create a sustainable future for Palmer & Harvey, stressing its “close trading relationship”. | Imperial, maker of Davidoff and Gauloises cigarettes, said in a trading update that it was working with others to create a sustainable future for Palmer & Harvey, stressing its “close trading relationship”. |
| Another key partner is Tesco, which accounts for about 40% of Palmer & Harvey’s revenues. Any rescue deal is expected to include an extension of the supermarket’s three-year distribution deal with Palmer & Harvey. | Another key partner is Tesco, which accounts for about 40% of Palmer & Harvey’s revenues. Any rescue deal is expected to include an extension of the supermarket’s three-year distribution deal with Palmer & Harvey. |
| The wholesale sector has been rocked by Tesco’s £3.7bn takeover of the cash and carry group Booker, which faces an in-depth investigation by the competition watchdog. | The wholesale sector has been rocked by Tesco’s £3.7bn takeover of the cash and carry group Booker, which faces an in-depth investigation by the competition watchdog. |
| Industry experts have warned that if Tesco shifts its business from Palmer & Harvey to Booker, the former will not be able to compete. But Tesco could extend its contract with Palmer & Harvey in an attempt to get its Booker takeover cleared by the Competition and Markets Authority. | Industry experts have warned that if Tesco shifts its business from Palmer & Harvey to Booker, the former will not be able to compete. But Tesco could extend its contract with Palmer & Harvey in an attempt to get its Booker takeover cleared by the Competition and Markets Authority. |
| Based in Hove, East Sussex, Palmer & Harvey supplies 12,000 products such as chilled foods and alcohol to 90,000 shops around the country, including large retailers, corner stores and petrol station forecourts. | Based in Hove, East Sussex, Palmer & Harvey supplies 12,000 products such as chilled foods and alcohol to 90,000 shops around the country, including large retailers, corner stores and petrol station forecourts. |
| The business, which was launched in 1925, is owned by current and former employees. It is run by Tony Reed, a former Tesco executive who previously managed the supermarket’s 3,000 convenience stores. Reed became chief executive of Palmer & Harvey last October and is expected to stay on after the rescue deal. | The business, which was launched in 1925, is owned by current and former employees. It is run by Tony Reed, a former Tesco executive who previously managed the supermarket’s 3,000 convenience stores. Reed became chief executive of Palmer & Harvey last October and is expected to stay on after the rescue deal. |
| Imperial Tobacco | |
| Tobacco industry | |
| Tesco | |
| Retail industry | |
| Supermarkets | |
| news | |
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