Nisa makes return to supplying Costcutter stores

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Nisa has signed a short-term agreement to supply Costcutter stores, following last week’s collapse of Palmer & Harvey (P&H) into administration.

The contract starts today (Monday) and covers “selected” stores previously supplied by P&H. Nisa says that they ”will be supported with a phased approach up until the proposed Co-op and Costcutter (CSG) supply agreement in the Spring”. C-Store understands that some Costcutter stores are being supplied by the Co-op, but this is a limited number of stores in more remote areas where alternative sources of supply would be difficult to find.

Darcy Willson-Rymer, ceo of Costcutter Supermarkets Group, said: “We are rolling out an interim wholesale delivered solution for the majority of our stores. Four wholesale suppliers (Musgrave, Bestway, Nisa and the Co-op) are providing support based on their geographic delivery services. Additional cash & carry solutions are also being provided by Bestway, Musgrave and Dhamecha, and we have expanded our existing direct to store service providing a wide range of fresh, chilled and ambient products for direct to store supply. Additional wholesale delivered supply will continue to be introduced with the intention of providing a delivered service wherever possible ahead of our transition to the Co-op.

“We would like to thank all the wholesale suppliers for the support they are providing. We fully appreciate how disruptive the collapse of P&H has been for all our retailers and providing an interim supply solution is our priority.”

Nisa previously supplied Costcutter stores before the two organisations split in 2014. The company maintained that the new contract will not impair availability levels for its own members during the festive period, as is the case with a similar short-term deal to cover the smaller McColl’s outlets previously supplied by P&H. 

Arnu Misra, interim ceo of Nisa, said: “Our two companies have a successful history working together and I’m pleased that we will be supporting Costcutter at this crucial time. 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.”

Readers' comments (10)

  • What a mess.

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  • (What a mess) why help a company who’s left so much uncertainty in the first place. Nisa sold up to the co-op for 20,000 pound must really be kicking themselves. This is got to be the biggest day light robbery in history. Worst possible move for nisa members. Question is who knew what and weres the Maa chaad sea surfer these days.

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  • I recal a blog on the Nisa website called the winds of change. It is still theee. It predicted this mess. What a mess

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  • Agreed Professor

    This is textbook executive greed led capitalism at its best. I feel very much for the retailers out there struggling today.

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  • This is crazy. These people have proceeded to do deals with almost every major wholesaler in the UK. As a supplier, where exactly are we meant to invest our terms? Every wholesaler is now claiming to be the preferred route to market, making my team's job impossible. It is a complete farce and the retailers will be the ones who suffer.

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  • I wonder what "Not on my Watch" Nick Read has to do with all this, wheeling and dealing. I suspect he has had his cut as will no doubt all his cronies.

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  • the biggest mistake by CC due to the arrogance decided to go own way since 2014 . now all that arrogance is in tatters they come back meekly to NISA as they know nisa is the best wholesale distributor .

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  • We now know why the Coop and Nisa's executive were so eager to get the vote concluded. They knew that Costcutter were coming back to be serviced by Nisa, it was a done deal. The Coop knew that they could not service Costcutter without Nisa.
    The Nisa executive must have known exactly what the plans were.
    Yet Mr Brown stood there and gave the shareholders tales of woe, his Perfect Storm had arrived, he told us we had no option but to grab the Coop offer. Then we had Nisa's sales executive phoning members telling them that this was the only way forward and that they must vote yes for the deal. Then he sends his sales team out collecting proxy votes from members the day after the online vote had closed. Why, because they had received the voting data and they knew they were short in getting the deal done.
    The last two and half years of Nisa has been a series of lies from the executive from start to finish.
    The Nisa shareholder has been sold down the river but no doubt the executive have been handsomely rewarded for handing Nisa to the Coop on a plate.
    Disgraceful and one that needs investigating.

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  • Lets face it nisa was in unmanageable debt, and would have gone the same route as Palmer and Harvey. Costcutter has only arranged a contract to supply by the Co-op, if you look at the close terms, it has not been bought out by the Co-op. The Co-op is very happy to buy for an extra 6000 stores. It cannot currently react to supplying 6000 stores. Hence a short term arrangement until the spring of 2018.
    Then Bibby Distribution will take the helm when logistic contracts are renewed and will take charge of supplying Nisa members or those left who have not been picked off on the cheap by the Co-op.

    Nice in it ""

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  • Fred,
    Was Nisa in unmanageable debt? Mr Brown stated less than six weeks ago that it was near it's limit on it's banking facility, part of his Perfect Storm speech. Yet here we are six weeks later and supplying all these extra stores from MRG and Costcutter. Where has all the extra cash come from?
    Can anything Mr Brown says be trusted?
    It's like 2 years ago when he was witholding member's rebates to blackmail them into spending so the company could reach an EBITDA of £7.2m. He told the shareholders along with Mr Read and Mr Baker that Barclays were insisting on that level of EBITDA otherwise they would be foreclosing on the Company and Nisa would be finished.
    Turns out they were lying to the shareholders. The £7.2m was in fact the trigger for over £2m worth of bonuses.
    So can you believe one word that comes out of the Nisa executive's mouths? In my experience no and the way they have conducted business over the last two years needs an in-depth investigation by outside agencies.
    All they have done is rob from their shareholders and filled their bank accounts.

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