ArrowXL is being prepared for sale by the administrators of its parent company, Logistics Group Limited (LGL), which collapsed in March this year with debts of over £150m.
According to a document recently lodged at Companies House, LGL’s administrators are preparing to sell off ArrowXL for around £57.5m.
The Wigan-based company, which specialises in two-person deliveries, is LGL’s one remaining asset, following the group’s sale of parcel delivery giant Yodel to consortium YDLGP, in February, just one month before the group collapsed.
The document, filed by joint administrators Daniel Smith and Daniel Butters of Teneo Financial Advisory, reveals that ArrowXL was valued at £70m in 2021 and currently has an estimated realisable value of £57.5m, although it adds that the basis of this estimate ”has not been disclosed” by ArrowXL’s directors
The administrators said that ArrowXL continues to trade normally outside of the administration.
It added: ”Arrow is a profitable and cash generative business. The joint administrators are supporting the senior management team through the initial transition and separation from the group, following LGL entering administration. In due course the administrators will seek to realise the value of the shareholding through an M&A process.”
The document also reveals plans to sell a plot of land owned by the group at Wednesbury, West Midlands, which had previously been used for HGV parking. The land has been valued at £1.3m.
LGL is owned by the billionaire Barclay family, which also owns the Telegraph, the Spectator and online shopping platform Very. However pressure from its lenders in recent years has seen the family forced to put all three up for sale.
In March this year it called in the administrators, with debts of more than £150m, of which £143.5m was owed to HSBC. The joint administrators have warned that HSBC will not be repaid in full.
