Darren Goldney MD

  • Goldney said it was critical the industry received clarity on what support measures will be made available

  • He also warned that wholesalers may struggle to supply schools under the government’s plans

 

Unitas Wholesale MD Darren Goldney has called for greater financial support for wholesalers set to face a raft of new challenges throughout the phased easing of lockdown and beyond.

Goldney told The Grocer it is critical the industry receives clarity on what support measures will be made available as lockdown is eased.

This is particularly relevant for foodservice wholesalers that supply the hospitality industry, which is facing a slow recovery as revenues will be severely impacted by social distancing measures.

“We’ve called for grants and business rates suspension to help the wholesale sector - neither have materially happened as yet,” said Goldney. “Despite the massive bills to government and the taxpayer overall, there is much support still needed for outlets and for wholesalers in this restart phase.”

Goldney has criticised the government for failing to acknowledge the ‘very real difference’ between lending money and ‘giving proper support’ in the form of grants and rates exemptions: instead he said ministers are promoting CBILS and bounce back loans.

“It is a bitter pill to swallow. Further debt for wholesalers without a robust reopening plan will be very unattractive,” he added.

Goldney has also warned that wholesalers may struggle to supply schools under the government’s plans.

The gradual return of pupils from 1 June could result in wholesalers not meeting suppliers’ minimum order quantities.

There is also the continued issue of supplier shortages, with the Unitas MD citing availability currently at 70%.

“A clear timetable and absolute clarity on forward support would help us all turn into more robust forecasts. If we do that well, we can reignite our sector,” said Goldney.

The Federation of Wholesale Distributors has outlined a raft of measures it is asking the government to consider. These include assistance with liquidity ahead of reopening, corporation tax relief for food write-offs and financial support for bad debt.

FWD CEO James Bielby has also welcomed Rishi Sunak’s announcement this week that the furlough scheme will be extended to October. “This will allow for staff to return to work gradually while businesses recover,” he said.

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