A publishing company is threatening to sue supermarket Tesco in a dispute over distribution of one of its titles.
Fox Publishing, of Richmond in Surrey, claims Tesco failed to honour a contract to sell monthly lifestyle magazine Healthy Living in its major stores.
Fox claims that an independent compliance check found that 87 per cent of Tesco stores that were supposed to stock Healthy Living did not.
As a result of the alleged breach of contract, Fox claims sales of the magazine plummeted, causing financial problems within the company.
It has outstanding debts to freelance journalists from December last year and is now considering legal action against Tesco for failure to comply with the exclusive distribution contract.
Angela Dukes, creative director of Fox Publishing, said: “Our cashflow continues to be extremely tight due to the major dispute with Tesco. While we are now instigating legal action against them, we do not anticipate a resolution in the short term.”
A spokeswoman for Tesco said: “We are investigating the claim and it would therefore be inappropriate for us to comment at this stage.”