|
Trade News Archive 2009 January February March April May June July August
Subscribe to our newsletter Go to The Wholesaler UK Directory
5th August 2009
Dawson News customers to receive full credits for wholesale stock
The Association of News Retailing (ANR) has confirmed that retail customers with wholesale distribution business Dawson News will receive full credit for newspapers and magazine supplied to them by the company after its drop into administration.
Most of the business has already been purchased by rival wholesalers Smiths News and John Menzies.
It confirmed that it had fallen into receivership after the loss of several key contracts to those companies in recent months.
Smiths News paid £1.5 million for the bulk of the wholesaler's assets this week, including the leases on 20 of its stock depots, while Menzies secured the rest of the company's property and remaining staff for £500,000.
A number of news retailers have expressed concern at the possibility of losing money from returns following the collapse of Dawson, with some also expressing fears that they would be treated like other unsecured creditors by the administrator.
John Lennon, managing director of ANR, said: "It is therefore a great relief that we are able to confirm that as far as returns go, it is business as usual for retailers formerly served by Dawson.
"We are grateful to the publishers and wholesalers with whom we have been discussing this issue for their common sense approach."
ANR confirmed that retailers with outstanding deposits with Dawson News will have them returned once accounts are settled.
According to the Times, one of the key contracts lost by Dawson News was with the paper's owner News International, which switched to Smiths News in March.
(c) 2009
Comment on this news story
Trade News Archive 2008 December November October September August July June May April March February January
|