What Fastway receivership means for its workers and parcels
The decision to place delivery company Fastway into receivership came as a surprise to many yesterday.
Fastway Couriers was one of Ireland’s largest delivery firms. Their vans were a common sight on Irish roads and estates. They were founded in Ireland in 2002, taking advantage of the surge in online shopping due to the covid pandemic lockdowns. At its peak, the company handled more than 25 million parcels annually. On Tuesday, staff were told the parent company Nuvion was entering receivership with work stopping immediately.
The Nuvion Group also includes Parcel Connect and Nügo. The business blamed sustained inflation, rising operating costs and ongoing price pressures across the parcels market, which have made it no longer viable in its current form.
Fastway employed approximately 300 workers directly in a range of roles; however, the company relied heavily on a franchisee model and part-time seasonal workers. It is understood that a further 600+ workers in these roles will also be impacted. The future for them is bleak unless a buyer can be found. Fastway’s workers would have relied on work in the run-up to Black Friday and then into Christmas as their busiest times.
It is understood that up to 50,000 packages were located in Fastway depots and vans awaiting delivery when staff were told yesterday that the company was entering receivership. The company has engaged with a third-party company, which will complete the delivery of the items, but delays are expected.
Fastway had a large number of retailers it worked with, delivering their products for them in Ireland. These retailers were informed of the receivership process and are understood to have arranged alternative delivery companies from this week.
Fastway Couriers operates in a very competitive market. Despite the surge in parcels and packages and the continued rise in online sales, most countries, including Ireland, are well served by delivery firms. There have also been declining volumes post covid.
Semi-state company An Post has moved strongly into the parcel market and has a network that other operators can struggle to compete with. Amazon, one of the world’s largest retailers, has also established its own logistics network in Ireland, along with delivery vans and warehouses. It is understood that a sale process was sought for the Fastway company, but was not successful.
Mark Degnan and Brendan O’Reilly of Interpath Advisory have been appointed as receivers and are expected to explore all potential sale options, including depots, assets, and brand rights. Expressions of interest may be considered as part of the process. However, a buyer for the company as a whole is unlikely.
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