Fears for Cork jobs as Fastway Couriers parent company enters receivership

There are fears for Cork jobs as the company behind Fastway Couriers, one of Ireland’s largest logistics suppliers, has entered receivership.

Fastway, as owned by the Nuvion Group, operates its second largest depot in Little Island, a site it expanded significantly in 2023.

The Nuvion Group also own the online order return facility Parcel Connect, which has 882 locations across the country and 86 in Cor. The group confirmed the move on Tuesday.

“The Nuvion Group which includes Parcel Connect, Nügo and also operates as Fastway Couriers Ireland has entered receivership," a spokesperson confirmed. 

Around 300 direct jobs are expected to be under threat nationwide following the announcement.

In addition, hundreds of subcontractors, franchisees and solo operators across the delivery network could also be affected.

“The business has faced sustained inflation, rising operating costs and ongoing price pressures across the parcels market, which have made it no longer viable in its current form,” the spokesperson said.

Mark Degnan and Brendan O’Reilly of Interpath Advisory have been appointed as receivers.

Delivery delays

Shoppers are advised that some deliveries may be delayed due to the announcement.

The spokesperson advised: “Parcels already in the network are expected to be processed and delivered where possible. The receivers are reviewing operational continuity across depots, franchisees and contractors.” 

“There may be a delay with some deliveries while the receivers coordinate with the respective retailers to have them fulfilled as soon as possible.” 

The receivers 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.

The Nuvion Group acknowledged that the “parcels sector has undergone significant post-COVID adjustment, marked by declining volumes, sustained cost inflation and structural competition from larger, often state-backed, operators.” 

“We want to sincerely thank our employees, franchisees and customers for their continued understanding and support during this difficult time,” the company said.

Industry comment

Irish Road Haulage Association president, Ger Hyland described the news as a "blow to an industry" and believes that more closures may occur in the transport industry.

Mr Hyland criticised party leaders for ignoring the pleas of the haulage industry in last month’s budget, saying: “Government policy will continue to impose higher fuel costs, ignore supports to help us transition to green HVO fuels, impose more taxes and are crippling regulations on a transport industry that cannot cope."

“This is only the beginning of the chaos. More haulage and transport companies' [may] be forced out of business by the policies of this government. At this point in time, there are any number of small businesses that have paid for packages that are sitting in depots," he said.

Mr Hyland called on the Government to provide an immediate support package to the transport and haulage industry.