Several news reports have emerged suggesting that UK parcel delivery company Yodel is urgently seeking a buyer before it is forced into administration.
Sky News, BBC and The Telegraph are among those suggesting that the company, which is part of a Barclay-owned entity called Logistics Group Holdings (LGH), is struggling to make ends meet in the face of increased competition.
Reports suggest that insolvency specialists Teneo have been lined up if a buyer can’t be found in time.
Yodel told the BBC it was “currently exploring strategic development options following a number of approaches. Any decisions taken will be made in the best interest of our clients, colleagues and key stakeholders. Yodel’s executive team remains wholly committed to the sustained growth of the business.”
The news comes after Yodel announced two new leadership appointments on February 5, following a record year in 2023, with revenues up 3.4%. Mark O’Sullivan was promoted from director of sort & transport and director of service centres to chief operating officer, while Lara Piggot was appointed as director of planning and business control.
Parcel and Postal Technology International approached Yodel directly for clarity on the media speculation. A spokesperson responded, “Yodel notes the speculative press coverage regarding the current situation of the company.
“In the summer of 2023, following a number of unsolicited approaches, we hired advisers to carry out a full strategic review. The company has continued to engage with interested parties regarding strategic options for Yodel. We can confirm that these discussions are ongoing, constructive and are in the final stages.
“While these discussions are ongoing, operations continue without any disruption, with thousands of parcels traveling through our network and being successfully delivered throughout 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 parcels with revenues up 3.4%. The Christmas peak season achieved record service levels, and we have seen parcel volumes through our out-of-home network more than double with the significant rise in demand for customer-to-customer services.”