Today we read in the FT that Dawson Holdings have put its core news distribution business into administration. The division, has recently lost the key accounts of both John Menzies and Smiths News and has lost contracts with an annual value of about £560m.Although they have lost their cash cow, Dawson will now regroup around its remaining divisions that distribute newspapers to airlines as well as books and marketing materials
Its competitors were not slow in picking at the bones with Smiths News spending a reported £1.5m acquiring 20 depots and vans and John Menzies are buying six depots and vans for £500,000, with a further two depots being shared.
News distribution like all heavy logistics operations are often run on the back of key accounts that enable the support of smaller and more profitable accounts. When a larger player moves it effects all when two large players move it time to switch off the lights.
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