Nisa is agreed a short-term contract to supply Costcutter stores affected by last week’s Palmer & Harvey collapse.

The deal will see Costcutter stores supplied by Nisa until they formalise the deal with the Co-op in the new year.

In a statement, Nisa said that their “strength and flexibility” were key in ensuring they were able to help out in the short term.

Interim CEO Arnu Misra praised the two companies “successful history” of working together, and said that he was looking forward to it.

“Our two companies have a successful history working together and I’m pleased that we will be supporting Costcutter at this crucial time,” he added.

“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.”