Yodel saved from collapse in last-ditch rescue deal

The struggling parcel courier Yodel has been saved from collapse in a last-minute rescue deal that will see it join forces with rival operator Shift.

YDLGP, a new company formed by Shift executives and the merchant bank Solano Partners, stepped in to buy Yodel for an undisclosed sum in the early hours of Tuesday.

The deal was struck in time to save Yodel from entering administration.

It is expected to save thousands of jobs, with the Liverpool-based delivery company employing around 10,000 people nationwide.

Under the shake-up, YDLGP has also agreed terms to buy Shift, a tech-focused logistics company founded by entrepreneur Jacob Corlett in 2017.

Mr Corlett is the only director of YDLGP, according to filings on Companies House. The company was incorporated on February 10.

In a statement, YDLGP and its backers said the tie-up would create “a disruptive logistics powerhouse”.

Mr Corlett added: “At the heart of this merger is Shift’s revolutionary artificial intelligence-driven technology platform, promising a future where efficiency and automation become the backbone of logistics operations.”

Mike Hancox, chief executive of Yodel, said: “Our customers have always been our priority and the transaction announced today allows us to ensure continuity for them, as well as our employees and wider stakeholders.”

Yodel had been controlled by the Barclay family, the owners of the Telegraph, since 2010.

The courier’s customers include John Lewis, Argos, Zara, AO World and Very Group, the online shopping company that is also owned by the Barclays.

However, Yodel has struggled in the face of fierce competition.

Britain’s parcel market is dominated by five carriers – Royal Mail, Evri, Amazon Logistics, DHL and UPS. Together, they account for 71pc of the 14m parcels shipped in 2022, according to the Pitney Bowes Parcel Shipping Index.

Yodel’s reported market share is 6pc.

It has also repeatedly fared badly in customer satisfaction polls. Yodel was named joint-worst courier company in the country last year, along with Evri, by Citizens Advice in its annual league table of couriers. A total 40pc of recipients reported problems with Yodel – the highest of all.

Reports emerged last week that Yodel was being put up for sale and risked collapsing into administration if a buyer was not found, in the latest sign of upheaval across the Barclay business empire.

The Telegraph was put into receivership by Lloyds Banking Group last year following a dispute about overdue debts of £1.2bn which had been secured against the business.

The Barclay family repaid the debt in full in December with new borrowing mostly sourced from the United Arab Emirates.

The Gulf state aims to convert £600m of the lending into ownership of The Telegraph for RedBird IMI, a media fund in which it is the majority investor.

The complex deal is currently under review by regulators as a potential threat to press freedom.

The Barclay family is barred by law from exercising any control over The Telegraph, which remains profitable, while its ownership is in question.