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Thousands of Jobs At Risk As Whistl Grapples with Financial Crisis

Written by: Keith Tully

Published: 11th May 2015

Thousands of Jobs At Risk As Whistl Grapples with Financial CrisisAs many as 2,000 jobs are believed to be at risk as directors of the delivery company Whistl consider their options amid an ongoing financial crisis.

The company, which was previous known as TNT Post, has suspended its door-to-door delivery services in Manchester, Liverpool and London while essential issues across its business are addressed.

Around 2,000 employees of Whistl are being consulted with a view to many of them potentially taking up offers of redundancy.

The company had hoped to see its expansion plans backed by significant investment from LDC, a division of the Lloyd’s Banking Group. However, the potential investor backed out of any deal with Whistl in April, citing “ongoing changes in UK postal market dynamics and the complexity of the regulatory landscape”.

After failing to secure investments in support of its plans for expansion of door-to-door services, statements from Whistl suggested that the company was considering whether or not to pursue future growth and an expansion of services.

"Following the announcement from LDC that it would not proceed with the proposed investment to fund further rollout of E2E [end-to-end] we have now commenced an extensive review of the viability and potential for the rollout of an E2E postal delivery service in the UK."

Further statements from the company said: "To stem the losses from the operations we have taken the difficult decision to suspend the current E2E service during the review process and all mail will now be delivered through our long-standing downstream access service until we have concluded the review. 

"As part of this extensive review, we will begin consultations with the relevant employees who are affected by the suspension of the E2E service, and with their union representatives, with a view to identifying and exploring viable proposals to secure the continuation of this service."

The trade union Community is to represent the employees whose jobs appear to be under threat at Whistl.

"Understandably, our members are extremely concerned and worried for their futures,” said Community’s national officer Les Bayliss.

"We will be doing all we can to identify a viable way forward for the business that safeguards our members' jobs,” he said.

As a provider of rival services, Royal Mail saw its share price rise by around 3 per cent after news of Whistl’s difficulties and decisions emerged.   

Keith Tully

Keith Tully

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Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

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