From turbulence to turnaround: Life after Charlie Shiels at ArrowXL

When Charlie Shiels (pictured above right) officially stepped down as chief executive of ArrowXL last month, it marked the end of an era, and the start of a pivotal new chapter for the UK’s largest two-person home delivery specialist. The baton passed soon after French logistics powerhouse Jacky Perrenot completed its acquisition of ArrowXL, bringing with it fresh leadership under chief executive Philippe Cuoc (left).

ArrowXL’s recent history has been turbulent. The company posted a £9m pre-tax loss in the 18 months to December 2022, a setback attributed to a long-running industrial dispute, inflationary pressures, and rising fuel costs. These were factors that strained an otherwise consistently profitable and cash-generative business. Then, in March 2024, its parent company Logistics Group Limited (LGL) collapsed, adding further uncertainty.

Shiels wanted to ensure he had the company in good hands before he left, but after such a challenging period, he decided to step down once it was in new ownership. The sale was completed on 23 June and Shiels retired three months later following a month’s annual leave.

Now, with Philippe Cuoc at the helm - a recognised turnaround specialist - the company aims to stabilise and rebuild. The acquisition by Jacky Perrenot and Cuoc’s appointment signal a focused effort to harness ArrowXL’s existing strengths while navigating ongoing market challenges and carving out new growth opportunities.

Rebuilding

Ask Cuoc why Jacky Perrenot moved for ArrowXL, and he’s quick to point out both the risks and the potential: “Let’s be honest, ArrowXL had its problems. It wasn’t in a good place,” he says. “But we saw a business with history, infrastructure, and reach. It was just lacking the right direction.”

The problems were no secret. While ArrowXL continued to operate independently after LGL’s collapse, its financials told a story of mounting pressure: shrinking margins, soaring wage and fuel costs, and a bitter industrial dispute that dragged on for months.

“It was a perfect storm,” says Cuoc. “Inflation, fuel, pay disputes - one after another. That kind of instability saps your momentum, and your margin.”

The strike action, which began in late 2022 and wasn’t resolved until spring 2023, created what Cuoc describes as “avoidable disruption” at a time when the business could least afford it. Operational costs soared, and productivity took a hit.

And yet, beneath the surface, there were signs of resilience. Revenues were growing, with turnover up by over 40% across the latest reporting period, Core capabilities in two-person home delivery and warehousing remained strong. ArrowXL’s long-standing relationships with major UK retailers hadn’t fractured. Its national network, while stretched, was still intact.

“It wasn’t broken,” says Cuoc. “It just needed leadership, clarity and a reset.”

For Cuoc and the Jacky Perrenot team, ArrowXL represented more than just a distressed asset, ripe for turnaround. It was a strategic move to expand into the UK market with a brand that, despite recent challenges, still held significant value.

“We weren’t looking for just any entry point into the UK,” Cuoc explains. “We were looking for a platform. ArrowXL already had the client base, the infrastructure, and brand recognition. We can build on that.”

Jacky Perrenot, one of France’s largest transport and logistics providers, has a long history of growing through acquisition, but the ArrowXL deal marks its first major push into the UK. Cuoc insist this isn’t a short-term play. “This isn’t about flipping a business,” he says. “We’re here to invest, to integrate, and to grow. The UK home delivery market is evolving fast and ArrowXL can be a serious player in that space again.”

That said, Cuoc acknowledges the scale of the task ahead. The business, he admits, still has work to do in winning back confidence, internally and externally. “People remember the strikes, the uncertainty,” he says. “We need to rebuild trust - with staff, with customers, with the market. That doesn’t happen overnight.”

Early priorities

Since stepping into the CEO role, Cuoc has wasted little time in setting out his vision. His first priority has been to stabilise the operation and restore morale after a bruising period of uncertainty.

“We’ve done a full operational review,” he reveals. “There were inefficiencies, some structural, some cultural. But you can’t build anything on shaky foundations. So step one is about control, consistency, and confidence.”

One of his first internal moves was re-establishing dialogue across all levels of the business.“We needed to listen, not dictate,” he explains. “From warehouse teams to planners to drivers. I wanted to hear what they were seeing day to day.”

He’s also been keen to empower the UK management team. While Jacky Perrenot will offer strategic support from France, Cuoc insists this is “not a takeover in name only; it’s a partnership with local leadership”.

“We’re not here to impose a French blueprint,” he says. “The UK market is unique. What works in Lyon doesn’t automatically work in Liverpool or Leeds.”

But it’s no surprise to find that some European practices may make their way across the Channel. Cuoc points to sustainability, fleet optimisation, and warehouse automation as areas where Jacky Perrenot has invested heavily, and where ArrowXL can quickly benefit.

“There are gains to be had,” he says, “but they’ll be implemented with the UK customer and colleague in mind.”

Decarbonisation

Alongside stabilisation, Cuoc is already laying the groundwork for a leaner, greener ArrowXL. The move is part of a wider transformation strategy blending commercial focus with environmental responsibility.

“Sustainability isn’t a side project; it’s core to how we operate,” he says. “Jacky Perrenot has made huge strides in this area across Europe. Now it’s ArrowXL’s turn.”

In France, Jacky Perrenot runs one of the largest alternative-fuel fleets in the industry, including electric and biogas-powered vehicles. Cuoc says similar solutions are firmly on the table for ArrowXL, particularly in dense urban delivery zones.

“We’ve already begun scoping how low-emission vehicles can be integrated into key routes. It’s about future proofing not box ticking. Decarbonisation is a massive challenge, but it’s also an opportunity. Customers, regulators, and communities expect us to act responsibly. We want to be ahead of the curve, not playing catch-up.”

ArrowXL operates a sizable fleet of over 300 trucks and more than 200 trailers, which makes fuel efficiency and emissions reduction a major focus. The company is investing in technology that optimises routes and reduces empty running. Microlise telematics, for example, helps analyse driving behaviour to improve fuel efficiency.

HVO has been adopted as a drop-in replacement in many vehicles, significantly cutting carbon emissions. “We’re also exploring electric trucks for urban deliveries where range and infrastructure make sense,” Cuoc says. “It’s early days, but we’ve already run pilot vehicles and are learning fast. Electric and hydrogen trucks are expensive, and infrastructure is patchy for companies operating on tight margins.”

He’s also eyeing opportunities to consolidate routes, cut empty running, and streamline last-mile operations through smarter planning and shared loads.

“A more efficient network is also a greener one,” he says. “Less waste, fewer miles, lower costs. That’s the triple win.”

Internally, energy efficiency and automation are also priorities. Several depots are under review for upgrades, including investment in solar power, LED lighting, and smarter warehouse systems.

“It’s about sweating the assets,” Cuoc explains. “Whether it’s rethinking shift patterns, using buildings better, or investing in cleaner tech, we’ll do what makes sense commercially and environmentally.”

But decarbonisation, he admits, remains an uphill battle for the wider sector. Infrastructure, costs, and vehicle availability all present barriers. By now it’s a tediously familiar tale.

“That’s where government and industry need to step up,” he says. “You can’t expect SMEs to carry the burden alone. If we want real change, we need real support.”

Competitive edge

Beyond restructuring and sustainability, Cuoc is clear about the direction ArrowXL must take to stay relevant in a fiercely competitive delivery market: sharpen the offer, be easier to work with, and deliver value beyond just moving goods.

“We’re not here to be everything to everyone,” he says. “Our job is to be excellent at what we do - two-person home delivery, warehousing, final-mile expertise. That’s the core. That’s where we win.”

He believes ArrowXL’s scale, combined with the agility and specialist knowledge of its people, gives it a natural edge over larger rivals.

“It’s about being the most focused,” Cuoc says. “Retailers want reliability, data, transparency. They don’t want noise or complexity. We’re stripping that away.”

A key pillar of that strategy is improving service visibility and responsiveness. Under Cuoc’s direction, the company is accelerating investment in digital systems and real-time tracking, aiming to make customer interactions smoother and more proactive: “Customers shouldn’t be chasing us for answers, we should be ahead of the question. That’s what we’re working towards.”

Internally, he’s also driving a more collaborative culture with ArrowXL’s client base, especially retailers: “If we’re not aligned with their challenges - seasonality, returns, inventory pressure - we’re not doing our job properly”.

There’s also a renewed emphasis on leveraging ArrowXL’s warehousing footprint more strategically, offering clients integrated, end-to-end solutions combining storage, delivery, and customer service in one seamless flow.

“We want to be a proper supply chain partner,” Cuoc says. “You want your fridge, your sofa, your mattress delivered on time, safely, with a great customer experience. No drama. That’s the promise.”

People person

ArrowXL’s industrial dispute last year left scars on the bottom line, but Cuoc reiterates that rebuilding relationships with drivers, warehouse operatives, and management is a key priority.

“For me, people are everything,” Cuoc stresses. “You can’t fix a business without fixing the culture. And that starts with the team. We inherited a workforce that’s been through a tough time. It’s understandable there’s some scepticism. So the first thing I did was listen, really listen.”

He has introduced a series of regular “open forums” where staff at all levels can ask questions directly to senior management: “Transparency is crucial. People want to know what’s going on, why decisions are being made, and how it affects them.”

Alongside this, ArrowXL is stepping up investment in training and career development. The company runs a growing apprenticeship programme, and Cuoc is pushing to widen it, especially to attract younger talent into what has historically been an aging workforce.

“The average age of a driver is creeping up,” he explains. “We need to bring fresh blood into the industry - people who want to grow a career, not just punch a clock.”

Cuoc is also championing wellbeing initiatives, recognising the physical and mental toll of frontline delivery work by improving facilities, reviewing rotas, and making sure support systems are in place. He’s hopeful these efforts will help reduce absenteeism, improve retention, and foster a more positive working environment.

“Loyalty is earned,” he says. “If we treat people well, if we support them properly, they’ll give their best. That’s what this turnaround depends on.”

As ArrowXL embarks on this new chapter, the road ahead is clear but challenging. With a firm commitment to stability, innovation, and sustainability, the company aims not only to reclaim its position as the UK’s home delivery specialist of choice but to redefine what excellence means in the sector.

“Turnaround isn’t just about fixing what’s broken,” Cuoc reflects. “It’s about building something stronger, smarter, and more resilient - something that can thrive long into the future. That’s the ArrowXL I’m determined to create.”