"Supermarket chain Asda, led by Andy Bond, is working on 'worst-case scenarios' across the board - combing its supplier base and examining
alternatives to them. 'Suppliers are under a lot of pressure and there will be casualties,' said a senior executive at another store chain, which
has already stepped in to pay troubled suppliers ahead of schedule. 'We need each other, it is not a zero-sum game.'
The need for alternative supply lines has been brought into focus by the collapse of Woolworths and its distribution arm, EUK, which supplied the
supermarkets as well as Zavvi, the former Virgin Megastores, with CDs. However, cracks have been showing in other areas, with milk processor Dairy
Farmers of Britain in the midst of a restructuring that will see two dairies close and up to 640 jobs lost."
Guardan
That is not a good sign.
Plans like that are made when they "KNOW" there are going to be issues.
Problem one, no one has any money.
Problem two, no stores have any product to sell.
Looks to be "REAL" tuff times in UK in 09.