Yodel has reportedly been spared from falling into administration thanks to a last-ditch takeover agreement with a consortium including rival Shift.
A newly formed company known as YDLGP will be formed following an early Tuesday deal, which will be backed by merchant bank Solano Partners and rival operator Shift, according to Sky News.
This will incorporate both Yodel and Shift, creating a single larger parcel delivery service, and was agreed on a solvent basis, meaning Yodel averted administration.
“We're extremely excited to begin the next chapter of Yodel's journey, leveraging the scale of our business with the support of new shareholders and the future benefits of the Shift technology platform,” Yodel chief executive Mike Hancox told Sky.
“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.”
Rumours had circulated in recent days over Yodel’s finances, with owners the Barclay family reportedly having rapidly searched for buyers.
Yodel generated revenue of £561.8 million last year, with over 190 million deliveries being made annually from its 50 UK sites, but has struggled to make a profit in the face of intense competition.
The deal is set to officially be announced later on Tuesday, as per Sky.