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Premier Foods' 'pay and stay' scheme questioned

Premier Foods, one of the UK's biggest manufacturers, has been asking for payments from its suppliers in return for the chance to continue working with it, Newsnight has learned.

One supplier said the practice - known as pay and stay - was like "blackmail".

Newsnight understands the struggling company has received millions of pounds in total from its suppliers in this way.

Premier Foods said it was confident its "invest for growth" scheme did not break any rules under competition law.

Laura Kuenssberg reports.

  • 04 Dec 2014