Struggling courier Yodel faces calling in administrators

Yodel, which is amongst the lowest rated parcel couriers in Britain, is facing the predicament to call in administrators in a final hope to make a rescue deal. This could result in an online shopping delivery disruption.

The Barclay family, who own the courier,  is searching for a deal after struggling to stay afloat amongst heavy debts. The search for new owners started last summer, led by corporate finance advisers Clearwater. However, insolvency experts at Teneo have now been lined up after efforts to find a buyer for the struggling company wages on.

Yodel’s customers include some of the British highstreet's biggest retailers including John Lewis, Argos, Very and Zara.

This comes after Yodel was rated one of the worst shipping companies of last year by Citizens Advice in its annual league table of couriers. The company, which holds 6% of the British courier market, is up against long time rivals Royal Mail, Evri, Amazon Logistics, DHL and UPS.

Yodel hasn't made any hasty decisions as of yet, informing The Telegraph on Wednesday that is was "business as usual".

A spokesman for Yodel said: "A process to review strategic options is nearing its conclusion with a number of parties looking to acquire the business. In the meantime Yodel is focused on business as usual."

A source said its looming financial obligations to repay debts, such as around £140 million owed to HSBC, has left the company desperate to receive a cash injection in the upcoming two weeks. It is worth noting that the business had not made a profit until the coronavirus lockdown boosted e-commerce and courier services.

The Liverpool-based company currently employs 12,000 staff nationwide during its busiest periods and around 10,000 the rest of the year.

Reportedly, buyout interest has come from a slew of rivals, such as InPost and Shift. The Delivery Group pulled out of the process a month ago, sources said.