Yodel is engaging with “interested parties” to consider “strategic options” for the group, a spokesperson told This is Money on Thursday amid takeover speculation.
The parcel company stated that talks with interested parties are already in the “final stages”.
The group, which works with retailers including AO, JD Sports, John Lewis and Zara, suggested several parties were looking to buy it.
This was reported on Thursday The Telegraph that Yodel was about to call administrators, threatening a possible disruption of online shopping networks.
Talks: Yodel has told This is Money that he is engaging with “stakeholders” to consider “strategic options” for the group.
The Telegraph’s report suggested insolvency specialists Teneo had been brought in in the event Yodel was placed into administration.
Yodel is owned by the Barclay family through an entity called Logistics Group Holdings. One of Yodel’s key customers is online retailer Very, which is also owned by the Barclay family.
On Wednesday, News from heaven reported that one of Yodel’s rivals, The Delivery Group, was one of the potential buyers in the mix.
A Yodel spokesperson told This is Money: ‘Yodel takes note of the speculative press coverage about the company’s current situation.
‘In summer 2023, following a series of unsolicited approaches, we engaged advisers to carry out a full strategic review.
‘The company has continued to engage with stakeholders regarding strategic options for Yodel. “We can confirm that these discussions are ongoing, constructive and in the final stages.”
The spokesperson added: “While these discussions continue, operations continue without any disruption, with thousands of parcels traveling across our network and being successfully delivered across the UK.”
“Our performance over the last year is testament to the long-term strength and growth potential of the Yodel business, handling 191 million packages with revenue increasing 3.4 per cent.”
Rankings: In November, Citizens Advice released its latest annual parcel delivery rankings.
The group said it achieved “record service levels” over Christmas and claimed to have seen parcel volumes across its Out of Home network double amid a surge in demand for customer-to-customer services.
Last month, Yodel said it enjoyed a “record” 2023, with package volume up 3 percent to 191 million and revenue up 3.4 percent. Growth in alcohol and pet food deliveries increased, as did deliveries through resellers.
In January, Mike Hancox, CEO of Yodel, said: “I am delighted that Yodel has successfully overcome the challenges of rising labor costs and high inflation in 2023, while continuing to support our retail clients and their customers with excellent service and repair levels. -shape our business for strong performance in growing categories.
“Over the next year, we will aim to consolidate our recent investments in technology and grow our out-of-home network, in response to the huge increase in customer demand for used products.”
In November, Citizens Advice published its latest annual parcel delivery rankings.
According to the research, more than 13 million people had problems with the last package they received.
Evri and Yodel were at the bottom of the pack table, with an overall score of 2 stars out of a possible 5, closely followed by DPD with just 2.25 stars.
Royal Mail and Amazon jointly took first place, but with only 2.75 stars out of 5.
The top five delivery companies were evaluated on their performance on delivery issues (of which Yodel, DPD and Evri were the worst performers), as well as customer service, accessibility and trust.
Michael Lynch, partner at law firm DMH Stallard, said: “With the Barclay family’s finances under scrutiny, it may be that Yodel’s lenders are pushing for a refinancing or exit.”
‘While Yodel’s business may be apparently positive, if creditor pressure increases and a regular business sale does not occur, options will become increasingly limited over time.
‘Independent insolvency professionals are often engaged to carry out an IBR, allowing a board to weigh up the options.
“However, if the market detects that a company has suffered damage and options such as refinancing or an outright purchase offer (including debt repayment) are not realized, the only option may be some type of insolvency process; this could include a restructuring plan. or administration.
“Potential buyers would always prefer to buy out of administration than not.”
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