TNT eyes possible sale of Dutch fashion business as restructure moves ahead

TNT Fashion Group, headquartered in Oldenzaal, the Netherlands, provides transport and warehousing for clothing retailers and employs about 660 people.

The sale is likely to attract interest from companies and buyout firms, and TNT said: “The possible sale of the Dutch operations of TNT Fashion will be designed to ensure service continuity.

“The sale process will not affect the terms and conditions of existing agreements with customers and suppliers.”

Its customers range from high-end designer labels to high-volume retailers.

The company is revamping after UPS, the biggest package-delivery company, terminated a €5.16 billion bid in January amid opposition from European Union regulators. The overhaul includes the disposal of its Brazilian business unit and the company’s domestic road unit in China.

The fashion business has about 1,000 employees in total, of which 330 work in the UK. TNT is only considering a sale of the Dutch unit. The UK fashion operation will be integrated into the regional UK express operations, it said.

“The possible sale of the Dutch operations of TNT Fashion will be designed to ensure service continuity,” the company said in the statement.

“The sale process will not affect the terms and conditions of existing agreements with customers and suppliers. TNT Express will continue to offer delivery services to the fashion and lifestyle industry.”

The sale of TNT Fashion comes as part of a company-wide restructure at TNT Express by new CEO Tex Gunning.

In its second-quarter 2013 results announced last month, TNT Express reported a €280 million loss, with sales down 3.1% year-on-year and underlying operating income down 27%.