Following the announcement that Palmer & Harvey is entering administration, Costcutter Supermarkets Group has confirmed Co-op will be its exclusive supplier.

The deal means that Co-op will supply 2,200 Costcutter, Mace, Simply Fresh, Supershop and Kwiksave convenience stores from next spring.

The group’s independent retailers will also be able to become Co-op franchisees under the new deal.

Darcy Willson-Rymer, Costcutter Supermarkets Group CEO, said: “With Palmer & Harvey no longer able to supply our stores, we have activated our contingency plans that will see our retailers supported by Co-op and other suppliers in the run up to our deal with Co-op.”

The announcement follows Nisa members approving a £137.5m deal with Co-op earlier this month.

Jo Whitfield, Co-op Food chief executive, said: “We are operating in a dynamic market environment and this deal, coming shortly after our Nisa announcement, shows how we are positively responding to the changes occurring within the sector.”