Localist – The Food Merchant, a prominent UK wholesaler supplying major supermarkets such as Morrisons, Waitrose, and Co-op, has officially ceased trading following liquidation, leaving 71 employees redundant. The company had been a key supplier within the industry for more than three decades.
Thomas McKay, Managing Partner of BTG in Scotland and Northern Ireland, shared insights with the Glasgow Times regarding the closure. He noted that the company’s directors had made considerable efforts to restructure its debt to save the business and protect jobs. Unfortunately, these attempts were unsuccessful, making the job losses unavoidable.
The closure also raises concerns for numerous small suppliers owed money by Localist, as the loss of this distribution channel may significantly disrupt their operations. BTG is currently reviewing all claims to determine potential dividend payments to unsecured creditors, though McKay cautioned that any returns are expected to be minimal due to the company’s secured debts.
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In response to the redundancies, BTG is actively supporting the affected employees by facilitating access to financial entitlements and assistance programs such as Partnership Action for Continuing Employment (PACE) and the Redundancy Payments Service. Their focus remains on providing guidance during this difficult transition and on maximizing returns from asset sales to benefit creditors.
The closure of Localist comes amid a competitive supermarket landscape that includes rivals such as Tesco, Asda, Lidl, Sainsbury’s, and Marks & Spencer.