News / Prospective buyers said to be circling UK parcel specialist Yodel

Yodel’s future has been thrust into uncertainty, with rumours circulating of its sale or administrators being lined up.

News broke yesterday that the UK parcel delivery firm, owned by the Barclay family and with 10,000 employees on its books, was entertaining prospective offers from, among others, The Delivery Group, and that if a buyer is not found, an insolvency expert was on hand.

The BBC reported that a Yodel spokesperson had said the firm had “a number of parties looking to acquire the business”.

The spokesperson told the BBC: “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,” and added that Yodel “operations continue without any disruption”.

But the news follows a turbulent six months for the Barclays, who lost control of the Daily and Sunday Telegraph newspapers when Lloyds sent in receivers to take control and put them up for sale.

After securing UAE funding to finance its £1.2bn debt, the family stopped the sale, but a restructuring specialist has suggested the episode could have left Yodel’s lenders with cold feet.

Partner at law firm DMH Stallard, specialising in restructuring and insolvency, Michael Lynch said: “It may be that Yodel’s lenders are applying pressure for a refinance or exit.

“Though Yodel’s business may be ostensibly positive, if creditor pressure is mounting and a usual business sale not forthcoming, options will become more limited.

However, Mr Lynch added that “if the market senses an injured business, without options such as refinance or an outright offer to purchase (including debt repayment) coming to fruition, it may be that the only option is some form of insolvency process”.

He added that “this could include a restructuring plan or administration. Potential purchasers would always prefer to buy out of administration than not”.

A Yodel spokesperson told The Loadstar: “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.”