More than £6m owed to 200 suppliers by collapsed wholesaler SOS Wholesale is not expected to be paid back, a new report has revealed.
The report by administrators Interpath revealed the wholesaler, one of the biggest discount suppliers to the convenience sector, owed more than £10.5m to suppliers, lenders and the company’s founders at the time of its collapse.
Interpath stated cashflow and lending issues had contributed to SOS Wholesale’s eventual demise. It said: “In FY24, the company generated £42.7m in turnover, delivering a profit before tax of £1m.
Read more: Dairyfresh to acquire SOS Wholesale
“While gross margins have softened over time, the business remained profitable and maintained a positive net-asset position. However, liquidity pressures intensified in FY25, with cash reducing from £1.9m at October 2024 to £516,000 by May 2025.”
Following the issues, Interpath was appointed to review SOS’s cashflow forecast. However, a “worldwide freezing order” was imposed on the company, prohibiting it from disposing or dealing with assets on a worldwide basis. This meant SOS was unable to complete a refinancing process with its lenders.
Despite its collapse, wholesaler Dairyfresh purchased SOS Wholesale’s assets last month, allowing it to continue providing services to affected retailers under the SOS brand.
