The outlets involved were described as "exposed stores" where there was a risk the group would not be paid for products. As a result of the cutbacks, group revenue fell by 21% last year and ADM Londis is now supplying just over 300 shops, down from 350 a year ago. Despite falling sales, the group made a 2.4m pre-tax profit last year, although this was half the figure for 2008.
A review had led to a 15% cost reduction across the group, said chief executive Stephen O'Riordan, with the loss of 10 jobs reducing staff numbers to 70.
"There has been price deflation on food of about 8%," added O'Riordan. "Consumer spending is down, people are shopping around and retailers have to compete on price. There was a premium being paid for convenience, but that is gone now."
He added that a recently signed strategic alliance with Nisa-Today's would be a key factor in driving future growth. He said the deal "has given us access to more than 6bn of buyer power and helped our retailers compete with the larger multiples".