The closure of a Fife distribution firm has been described as a “devastating blow” for the area by administrators after 151 jobs at its Dunfermline base were axed earlier this week.
Directors of Palmer & Harvey McLane Limited said they had no choice but to shut up shop on Monday after being hit by challenging trading conditions. They said they had been left with insufficient cash to continue to trade beyond the short-term, and no reasonable prospect of a sale.
Just 31 of the 182 staff employed by the firm at Pitreavie Business Park have been kept on, with the remaining employees expected to help joint administrators from PricewaterhouseCoopers (PwC) bring the business to an orderly closure.
Matthew Callaghan, joint administrator and PwC partner, said: “The Palmer & Harvey name has been a trusted partner for retailers and suppliers for nearly 100 years.
“This is a devastating blow for everyone who has been involved in the business.
“The administration team will focus on working with employees, clients and suppliers to facilitate a smooth and effective wind-down or transfer of operations over the next few weeks.
“We will be circulating correspondence to all staff as soon as possible which will outline the support available to complete redundancy payment forms.”
The P&H Group employed around 3,400 people but made 2,500 immediate redundancies at its head office and across the branch network in the UK.
The support of secured creditors means November wages have been paid.
SNP MSP Shirley-Anne Somerville said the news at P&H represented a “double blow” for west Fife on the back of the job cuts at Babcock in Rosyth.
“My sympathies go out to the employees of both companies, their families and the communities affected, at what will be an anxious time for them in the run-up to Christmas,” she said.
“This is awful timing given that Christmas is just around the corner, and the situation is very uncertain for P&H staff, who have been extremely loyal to the company.
“I will be meeting with the Minister for Business, Innovation and Energy, Paul Wheelhouse MSP, later this week to discuss the situation in West Fife and will seek further details about what support the PACE Team can bring to assist workers in the area at this difficult time.
“In the meantime, I would hope that P&H and the administrator, PwC, will work with shopworkers’ union USDAW to help provide clear advice to staff about their rights and choices during this tough period.”
