A major UK wholesaler has gone into administration with the immediate loss of 2,500 jobs.

P&H, which has bases in Aylesford and Snodland, had been hit by difficult trading conditions in recent months and efforts to restructure the business have failed.

This resulted in cash flow pressures and it has not been possible to secure extra money to support the business.

A statement from administrators PwC said it had been appointed in London’s High Court yesterday.

The P&H Group employs about 3,400 staff and 2,500 posts will instantly go.

Remaining staff will help the administrators in managing the business to lead to closure.

The business, known in full as Palmer & Harvey McLane Limited, is the UK’s largest wholesaler to the UK convenience market.

It has 14 regional distribution centres and around 90,000 customers from small corner shops to the country’s largest supermarkets.

Matthew Callaghan, joint administrator and PwC partner, said: “The Palmer & Harvey name has been a trusted partner for retailers and suppliers for nearly 100 years.

“This is a devastating blow for everyone who has been involved in the business.

“The administration team will focus on working with employees, clients and suppliers to facilitate a smooth and effective wind-down or transfer of operations over the next few weeks.

“This is a devastating blow for everyone who has been involved in the business..." - Matthew Callaghan, PwC

“The P&H Group has faced a challenging trading environment, and the need for significant restructuring has been recognised for some while.

"The company has insufficient cash resources to continue to trade beyond the short term and the directors have concluded that there is no longer any reasonable prospect of a sale.

"Therefore, the directors have had no choice but appoint administrators.

“The administrators are working closely with employees affected by the closure of the business to ensure they receive the support they need during this difficult time to assist with their claims for redundancy and other compensatory payments.

"Our priority is to ensure that all employees made redundant are assisted in processing their claims with immediate effect.

“We will be circulating correspondence to all staff as soon as possible, which will outline the support available to complete redundancy payment forms.”