have announced their resignations from the BGA group of wholesale companies over the last few weeks.

Some have complained of low morale within the group following the take-over last year of Purvis Distributors -- the largest acquisition in local company history.

Two people, who did not want to be named, said there was unease among some about the way the company was being run, largely as a result of upheaval at the company.

But BGA president Mr. Ward Young last night attempted to downplay the situation and the effect it would have on his business empire.

It was virtually inevitable that some staff would want to leave following such a large merger, said Mr. Young.

He added: "What is pleasing to us is that many of those who have resigned are going to new careers.

"If they were going to our competitors, I would feel there's a real problem, but they're not.'' Mr. Young said: "It is typical of any organisation for morale to take a real dip when two companies merge and people have to find their feet in a new organisation.

"The stories you've been hearing about low morale date back some months ago, before Christmas, when we physically moved our warehouse.'' In the 12 months following the acquisition of Purvis, about 40 staff had left the BGA group -- most by redundancy with some resigning.

"We believe in a family type of business and some people do not want that,'' he said.

Economies of scale have been made which has led to a healthier and stronger new company "able to provide the best service on time at the best price''.

He added: "I feel we're coming out of this period of uncertainty now. I've been in touch with out customers and they seem to think our service is better.

"We've invested a considerable amount of money in the warehouse and it's looking good.'' Mr. Ferguson, who joined BGA as part of its Purvis takeover, declined to comment on his decision to resign. Most of the resignations have come in BGA's sales department.