Yodel in final stages of talks amid concern over its future

Parcel delivery firm Yodel has said it is in the "final stages" of talks over options for the company amid concern over its future.

The company, which employs about 10,000 people, said discussions with "interested parties" were ongoing and "constructive".

Reports suggest the firm is looking for a buyer, and that it could call in administrators if one is not found.

Yodel said its "operations continue without any disruption".

The firm is owned by the Barclay family and one of its largest clients is online retailer Very, which is also owned by the Barclays.

On Wednesday, Sky reported that the Barclay family was urgently seeking a buyer for Yodel, with The Delivery Group among the possible suitors.

The BBC has approached the Barclays for comment.

A Yodel spokesperson said: "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."

An earlier statement from Yodel had said that it had "a number of parties looking to acquire the business".

The Telegraph reported that insolvency specialists Teneo have been lined up if the business is to be put into administration. Teneo has declined to comment.

Yodel is one of the biggest courier companies in the UK. Last year, it delivered 191 million parcels, with revenues up 3.4%.

However, last year Citizens Advice rated Yodel as the joint worst of the largest five UK courier firms. Along with Evri, it was given an overall score of two points out of five.

According to Yodel's website the company works with retailers such as Zara, JD Sports and John Lewis, although the BBC understands that the firm only delivers a small percentage of John Lewis goods.

Retail analyst Catherine Shuttleworth told the BBC that the market for delivering parcels was "incredibly competitive, it's really cut-throat".

"Yodel have got stuck in a place where they're a small player in what has become a very, very big market," she said.

However, if Yodel left the market she does not think retailers will have a problem finding alternative couriers.

"They'll swap to an alternative supplier, the market is full of them. They'll very easily shift their volume to somebody else."

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The Barclay family's finances have come under focus after the Telegraph and the Spectator magazine were put up for sale last year by Lloyds Banking Group.

The bank seized the titles from the Barclays as it sought to recover £1.1bn it was owed.

The family repaid the debt using funds from the United Arab Emirates, effectively ending the auction for the Telegraph.

However, the complex nature of the arrangement has led the government to launch an inquiry into the deal.

Michael Lynch, a partner at law firm DMH Stallard and insolvency and business restructuring specialist, said: "With the Barclay family finances coming under scrutiny, it may be that Yodel's lenders are applying pressure for a refinance or exit.

"Though Yodel's business may be ostensibly positive, if creditor pressure is mounting and a usual business sale is not forthcoming then, as time goes by, options will become more and more limited."

Ms Shuttleworth said that ultimately she thought that competitors would choose the more viable parts of Yodel's business, "but they'll wait to see what happens".

"I don't think it is a business that can continue in one piece but it could be broken up and their competitors will buy parts of it to fit in to their existing networks."