Wholesaler Dawson News is set to lose up to £125m in revenue with two major distribution contracts unlikely to be renewed, according to press reports.
Dawson’s contract with Trinity Mirror, worth £50m, expires in September while a £75m deal with Marketforce expires at the end of this year.
The loss of the two high profile deals is a further blow to Dawson, which has already lost contracts with Associated Newspapers, Comag, Frontline and Seymour Distribution.
News of the latest losses will further strengthen the market dominance of Dawson’s major rivals, Smiths News and John Menzies.
The Daily Telegraph claims Dawson will ask the Office of Fair Trading to review its decision last year to refer the newspaper and magazine distribution industry to the Competition Commission.
Despite concerns that the market was already dominated by a handful of major players, the OFT called for legislation allowing exclusive territorial distribution deals to be relaxed.
“The end result has been the exclusion of Dawson News and a number of smaller wholesalers from the market, effectively creating a wholesaler network of just two regional monopolies,” said chief executive Peter Harris.
Dawson distributes to 14,000 retailers and claims to have a 20% share of the UK newspaper and magazine market.