ArrowXL, a prominent delivery firm, is being prepared for sale following the collapse of its parent company, Logistics Group Limited (LGL).
- LGL, having accrued debts exceeding £150m, entered administration in March this year.
- The sale of ArrowXL is anticipated to fetch around £57.5m, as per recent valuations.
- Despite its parent’s downfall, ArrowXL remains profitable and continues operations without disruption.
- LGL’s financial turmoil has resulted in the sale of various assets, including a plot of land in the West Midlands.
ArrowXL, a well-regarded delivery enterprise based in Wigan, is being positioned for sale amid the financial collapse of its parent entity, Logistics Group Limited (LGL). This development follows LGL’s declaration of debts surpassing £150 million, which necessitated the involvement of administrators. Such measures became imperative when the company could no longer stave off creditor pressure.
According to documents recently submitted to Companies House, ArrowXL’s anticipated sale value stands at approximately £57.5 million. This figure represents a significant reduction from its 2021 valuation of £70 million, with the report noting that the methodology for this valuation has not been disclosed by ArrowXL’s directors. Despite this depreciation, the administrators highlight ArrowXL’s continued profitability and cash-generating abilities, asserting the business operates unhindered amid the ongoing transitional phase.
The collapse of LGL has furthermore prompted the divestiture of its residual assets, most notably a parcel of land in Wednesbury, West Midlands, appraised at £1.3 million. This tract, previously allocated for HGV parking, opens additional means for recuperating financial losses experienced by the Barclay family’s enterprise. The family, also proprietors of entities such as the Telegraph and Very, has faced mounting lender scrutiny culminating in this year’s administrative proceedings.
Administrators Daniel Smith and Daniel Butters from Teneo Financial Advisory have indicated support for ArrowXL’s senior management throughout this period of detachment from LGL’s broader structure. They also outline intentions to capitalise on ArrowXL’s market value through eventual mergers and acquisitions (M&A), thereby maximising returns for stakeholders amidst these challenging circumstances.
It is worth noting, despite LGL’s significant liabilities, that HSBC, the group’s primary creditor owed £143.5 million, is forewarned of partial repayment prospects at best. This situation underscores the financial complexities the Barclay family faces, having been forced to market other high-profile assets under their control to mitigate substantial fiscal exposure.
As ArrowXL continues operations, its forthcoming sale represents a pivotal moment in the aftermath of LGL’s financial disintegration.
