Nisa helps keep shelves of old 'friend' Costcutter stocked in wake of Palmer and Harvey collapse

By Scunthorpe Telegraph | Posted: 4 Dec 2017

SCUNTHORPE delivered wholesale giant Nisa has agreed to provide a short-term supply contract to a convenience retailer it has more than its fair share of history with, following the collapse of rival Palmer and Harvey. 

Costcutter, formerly a long term trading partner, will again be stocked by the Normanby Enterprise Park team in the wake of the high-profile failure.

The companies split from a long term partnership in 2014, triggering tough annual losses which it battled hard to recover from.

A total of £500 million of revenue was wiped off, with the management team overhauled to turn round the business, which culminated in the recent £137.5 million buy-out by The Co-op. 

In 2009 the then Nisa-Today’s board had rejected takeover offers by Bibby Line Group, the major shareholder in Costcutter, which valued the combined business at £134 million. The wholesale Today’s was paired off in the intervening time, and is now a stand-alone entity headquartered in Doncaster. 

Arnu Misra, interim chief executive of Nisa, said: “Our two companies have a successful history working together and I’m pleased that we will be supporting Costcutter at this crucial time. “Combined with our agreement to provide a short-term supply contract to McColl’s, this arrangement will increase our buying power for the benefit of all of our members. We look forward to working with Costcutter over the peak trading period, and providing our traditionally high levels of service to them, as well as to the rest of our membership.”

The Waldo Way team said the strength and flexibility of Nisa’s distribution model, working with DHL, has enabled it to “provide continuity to independent retailers at a time of significant industry turmoil following the sad demise of Palmer and Harvey”. 

The company was plunged into administration last week, with 2,500 jobs going and another 900 to follow.

Nisa has moved at pace to mobilise its support, while ensuring existing availability levels will be maintained for all members throughout this important festive trading period. 

Affected CSG stores, which have already been contacted by CSG, will be supported with a phased approach up until the proposed Co-op and CSG supply agreement in the spring.

Four years ago Nisa won the McColl’s work from Palmer and Harvey, but at a recent tender it signed a deal with Morrisons, a move that will see the Safeway brand return.

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