Acting swiftly after the news broke that Palmer & Harvey Wholesalers had gone into administration, the Co-op struck a wholesale arrangement to provide for 2,500 Costcutter stores.
Currently, Costcutter is continuing on contingency plans and the Co-op is looking for a short-term supplying solution until the new contract takes affect next year after the untimely Palmer & Harvey collapse.
To get through the Christmas period, Costcutter are relying on a team of wholesalers to keep products on their sales.
The Co-op’s wholesale deal with Costcutter will see Mace, Kwiksave, Simply Fresh and Supershop brands products provided from spring 2018.
Co-op also recently acquired the Nisa convenience chain with a £143m takeover.
Co-op food boss Jo Whitfield said: "We are operating in a dynamic market environment and this deal, coming shortly after our Nisa announcement, shows how we are positively responding to the changes occurring within the sector."
"Whilst our deal with Costcutter will start formally in Spring 2018 we are looking at practical ways we can support independent retailers during this busy trading period, in light of the news concerning P&H," Ms Whitfield added.
"It is essential that we maintain a strong independent retail sector and the Co-op is committed to playing its part, along with others in the industry, in ensuring this occurs.”