Palmer & Harvey is to cut its number of staff and product lines in attempt to reduce costs.
According to a leaked ‘Project Cyrus’ report seen by The Sunday Telegraph, the wholesaler is expecting to make a £27m loss next year, compared to £56m this year. Three thousand lines are to be delisted and head office costs will be cut by 15%.
The company was hit last week by a triple bill of bad news including CMA concerns, debt issues and the loss of their McColl’s contract.
The Sunday Telegraph reported that Palmer & Harvey is looking to win £100m of investment from “turnaround specialists”, suggesting that further investment by JTI or Imperial Tobacco, or an acquisition by Sainsbury’s are looking less likely than previously rumoured.
Asked about investment and acquisition plans last week, a Palmer & Harvey spokesperson told Retail Express it had “received some expressions of interest from a number of trade and financial parties”.
Palmer & Harvey declined to comment.
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