Palmer & Harvey’s (P&H) debts are causing suppliers to go out of business and will “severely worsen” availability issues already affecting convenience stores.

Suppliers stand to lose nearly half a billion pounds owed to them by collapsed wholesaler P&H. While companies like JTI, Imperial, PMI, BAT, Coca-Cola, PepsiCo and Mondelez stand to lose the most, the impact may be more severe for the other smaller suppliers that convenience stores depend upon.

JM&D ltd, Laganside Wholesale and RAGM plc are alternative suppliers of leading brands, allowing wholesalers to keep shelves full when demand outstrips supply. Now their future is at risk.

The collapse of P&H left JM&D owed more than half a million, leading banks to pull the plug on the business in January. JM&D sales manager Oliver Harris told Retail Express: “P&H are directly responsible for us going under.

"We were going to stop trading with P&H, but we received an official letter last year promising that we would be paid and to keep credit lines with P&H open. If it wasn’t for that letter we would still be in business.”

Laganside and RAGM are both owed even more than JM&D ltd at £535,713 and £1,007,844 respectively. Neither companies were available to comment.

Store Excel managing director and former Bestway operations director David Gilroy told Retail Express: “The big companies can stand a hit but for smaller businesses it could be make or break. The blame lies squarely at the feet of P&H’s senior management.”

Commenting on the risk to other businesses, Harris said: “The impact of this on supply is going to be felt throughout the market.”