Parcel courier Yodel has put administrators on standby as hopes of a rescue deal fade.
The delivery company has lined up insolvency experts at Teneo after it failed to find a buyer in time.
Yodel services some of the high street’s biggest names, including Argos, AO World, John Lewis, Very and Zara.
The Telegraph reported that no decision to appoint administrators had been made and the company said on Thursday that its operations “continue without any disruption”.
However, it comes as a source close to the negotiations over Yodel’s future said the company’s financial obligations meant an urgent cash injection is needed within two weeks.
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The delivery company, founded in 2008, had never made a profit until the Government-imposed lockdowns during the pandemic led to a boom in online shopping.
Yodel is understood to have enough cash to pay its delivery drivers the week after next, but it is expected to struggle to cover future costs. It employees between 10,000 and 12,000 drivers.
The firm is understood to have had takeover interest from several rivals including The Delivery Group, InPost and Shift, as well as a small handful of private equity and turnaround funds.
The looming collapse of Yodel will be of particular concern to HSBC, who is the firm’s single biggest creditor and is understood to be owed around £140m.
A Yodel spokesman told Retail Gazette: “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.
“While these discussions are ongoing, operations continue without any disruption, with thousands of parcels travelling through our network and being successfully delivered throughout the UK.
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Another business owned by the Barclay Brothers failing, they are worth billions but leave all the debts with the banks and extracted all the money out of the businesses.
Next to go will be Very their only remaining business.
Absolutely disgraceful. we now have you endure the shit of EVRI.