Prospective buyers said to be circling UK parcel specialist Yodel - The Loadstar

The upcoming fate of Yodel is now uncertain as rumors are spreading about its potential sale or administrators being prepared.

Yesterday, reports surfaced that a British company which delivers parcels, and is currently owned by the Barclay family, is considering offers from several parties including The Delivery Group. The company has 10,000 workers and if no buyer is found, an expert in managing insolvency is ready to step in.

Although there has been no response from Yodel to queries from The Loadstar, the BBC disclosed that a representative confirmed that the company has "several potential buyers interested in acquiring the business."

A representative informed the BBC that they hired consultants to conduct a comprehensive strategic evaluation after being contacted multiple times without invitation in the summer of 2023. Yodel has maintained communication with potential investors in order to explore potential strategic avenues.

We can verify that these talks are happening, productive and nearing completion," and they also said that Yodel's activities are going on smoothly without any interference.

However, recent developments have shown that the Barclays have experienced a chaotic period of six months. During this time, they had to relinquish power over the Daily and Sunday Telegraph newspapers due to Lloyds taking over and offering them for purchase by receivers.

The family was able to obtain financial support from the United Arab Emirates to cover their debt of £1.2 billion, which caused them to call off the sale. However, an expert in restructuring has expressed concern that this scenario may have made Yodel's lenders hesitant to continue with the deal.

Michael Lynch, who is a Partner at DMH Stallard, a company that specializes in insolvency and restructuring for businesses, stated that the reason for Yodel's refinance or exit could be due to the pressure being put on them by their lenders.

Even though Yodel appears to have a successful business, if creditors start to become more demanding and a typical sale of the business doesn't happen, available choices will become more restricted.

Yet, Mr. Lynch included that if the market perceives a struggling business that lacks alternatives such as refinancing or a definitive purchase offer (which could involve repaying debts), it's possible that insolvency proceedings may be the only choice available.

He further stated that there is a possibility of devising a reorganization strategy or seeking administration. In such a situation, if the company is put up for sale, buyers would be more inclined to purchase it if it is not under administration.