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Localist – The Food Merchant shuts down after 32 years, 71 jobs lost

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A British wholesale business that supplied products to major retailers such as Morrisons and Waitrose has stopped operating after entering liquidation.

The Food Merchant, headquartered in East Kilbride, was established in 1994 under the name Food From Scotland Ltd with the goal of supporting independent food enterprises in Scotland to expand.

Over time, the business broadened its scope and started assisting regional food producers throughout the UK in getting their goods into large retail chains including Morrisons, Co-op, and Waitrose, as well as catering services.

According to The Grocer, the business distributed 4,000 products weekly to more than 2,500 retail outlets and 1,000 contract catering operations.

Co-op was among the primary retailers that The Food Merchant used to supply. The business altered its title to Enterprise Foods Ltd in 2001, before adopting its current identity once more in 2025.

After three decades of operation, The Food Merchant has now closed its doors following liquidation, as documented by Companies House.

The shutdown has led to 71 employees losing their positions.

George Lafferty from BTG was designated as liquidator by Hamilton Sheriff Court on March 18.

Thomas McKay, who serves as managing partner at BTG covering Scotland and Northern Ireland, informed the Glasgow Times that the directors had attempted to reorganise the company’s debts to preserve the business and protect employment, but these efforts unfortunately proved unsuccessful, making the job losses unavoidable.

He explained that numerous small suppliers are owed funds by the business, and the disappearance of this distribution channel would significantly impact these food producers as well.

The firm is working to evaluate all claims and determine whether any dividend might be distributed to unsecured creditors, though this appears unlikely to be substantial given the volume of secured liabilities.

The company’s collapse has resulted in 71 job losses, and the team is actively supporting those impacted to help them access their financial entitlements and available assistance, including help from Partnership Action for Continuing Employment and the Redundancy Payments Service.

The focus now is on ensuring affected staff receive necessary guidance throughout this period while maximising returns from asset sales for creditors.

The beginning of 2026 has proven challenging for British high street retailers, with multiple businesses entering administration and others announcing extensive branch closures.

Prominent high street names such as River Island, Primark, and Poundland have already been compelled to shut locations in 2026, while Revolution and BrewDog have closed 21 and 38 pubs respectively.

Several other retailers have recently fallen into administration, including Russell and Bromley, Moores, Claire’s and The Original Factory Shop, Quiz, and LK Bennett.

Four British travel companies have ceased operations in the early weeks of 2026: Regen Central Ltd, Gold Crest Holidays, Asiara UK Ltd, and Simply Florida Travel Ltd.

EcoJet Airlines, marketed as the world’s first electric airline, has also entered liquidation after just three years, leading to all scheduled flights being cancelled.

UK delivery firm Yodel is set to be gradually wound down over the coming months following its acquisition by InPost.

Tesco has recently disclosed plans to eliminate 380 positions in shops across the UK, while reports indicate Morrisons is seeking to divest some of its in-store pharmacy operations as part of ongoing cost reduction measures.

The high street has not been entirely bleak, with several major brands confirming new store openings for 2026, including Aldi, M&S, and Superdrug.

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