The boss of a shop in Sherwood selling vegan and gluten-free products has expressed his sadness following the administration of a wholesaler he described as ‘one of the best’. Administrators have been appointed following the financial collapse of Health Stores (Wholesale) Limited, based at Blenheim Park Road, in Bulwell, and Tree of Life UK in Newcastle-under-Lyme.
Across the two sites, 143 members of staff have been made redundant. The Health Store, one of the leading health food wholesalers, supplied customers through the UK, Europe and Asia.
It was the main supplier for The V Spot, a Sherwood vegan shop in Mansfield Road, since the latter opened six years ago. V Spot owner Adrian Bhagat said it was a real shame and he spoke about how it was likely to have an impact on his business.
Mr Bhagat said: “It’s going to be a bit of a problem because there’s only a few large suppliers for small health stores and the Health Store is one of the best ones. They are good value for money and deliver the next day or day after so they are very efficient and make it much easier for us to get stock. They have a big range, a lot of things you can’t get from other wholesalers so it will have an impact on being able to get stock at a decent price for us."
Mr Bhagat explained he also uses other wholesalers based down south. But he praised the convenience of having the Health Store just a few miles away.
"They’ve been our main supplier for most of the time that we’ve been open. We’ve been open for six years and they’ve been our main supplier all of that time, so I know sales reps and a lot of the staff by name at least so it’s really sad to see them go. It’s really sad to see them lose their jobs and I'm sorry to see them go, they’ve been really supportive of our business - it’s just a shame really.”
The Health Store has been well known for supplying products which are gluten-free, organic and vegan. It has also sold vitamins, supplements, household, natural beauty and baby products.
Michael Barker, the owner of Supa-Snacks, a food van on Blenheim Park, said staff at the Food Store used to place a big order every Friday. He was also extremely saddened by news of the administration.
Mr Barker said: “They’re regular customers, we’ve been here for 35 years. It’s not good is it? There’s a lot of employees there."
Other local residents and workers said the loss of jobs had come at an extremely difficult time, amid the cost of living crisis. Carol Parker, who works in Bulwell and is 31 years old, said: "I feel sorry for the people who worked there and their families. It’s already hard at the moment as it is.”
George Brown, 46, who also works on the industrial estate, spoke of how hard it’s going to be in the next few years for businesses and workers. Mr Brown said: “It’s [the administration] not good, it’s a big company. It employed a lot of people over the years who now have lost their job. I think it’s going to be tough for everybody for the next couple of years.”
The Health Store and Tree of Life UK are among the country's largest independent health food and wellness products distributors. Across the two companies, 63 members of staff were retained to assist the administrators in the realisation of assets and the performance of their statutory duties.
East Midlands Chamber chief executive Scott Knowles spoke of the current challenges for businesses at such a difficult time. He said: “Surging inflation, driven by global and local headwinds, are creating a perfect storm that is making the cost of doing business unsustainable for many organisations.
“While Consumer Prices Index inflation was 10.1% in the year to July, Producer Price Inflation was 22.6% for the same period, which illustrates how many firms are attempting to absorb as much of these additional costs as they can.
“We’ve seen in our own research via our Quarterly Economic Survey of East Midlands businesses that 62% expect they will be forced to raise their own prices in the coming months because of the escalating costs for energy, fuel, people and raw materials.
“With the energy price cap expected to more than double in the coming months, it’s imperative the Government steps in to provide the necessary support that will give businesses the headroom to get through difficult times.”
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