A potential rescue investment in Palmer & Harvey by JTI and Imperial Tobacco is not expected to have a negative impact on retailers, store owners have said.

Last week it was revealed the tobacco giants are in talks with P&H about substantial investments in return for equity stakes.

Jayesh Parekh, who owns a Costcutter in Manchester, said: “The tobacco companies are probably not making enough profits on their own products now. That’s why they are looking to do something else. I don’t think it would have any impact on retailers.”

Vip Panchmatia, who owns a Mace store in Gloucestershire, added: “P&H is an old company and they have come back from difficult times before.”

The company also brought in restructuring expert Andy Leeser this week, according to Sky.
Robert Madden of Costcutter R & D Madden in Manchester said: “They need someone to go in and make some changes.”

A P&H spokesperson said: “As part of the planned refinancing process, we are in discussions with our lenders and stakeholders.”

A spokesman for JTI said it is in discussions with P&H to develop future business plans while a spokesman for Imperial said it is talking about a “range of potential options”.