TNT announces buyer for TNT Fashion B.V.

After announcing it was seeking to sell the fashion branch of its business last April, Dutch-based international courier and logistics firm TNT Express confirmed that it had secured a buyer for TNT Fashion B.V. this week. A consortium composed of Belspeed and Netlog group are to acquire the operation and the deal is set for completion by June this year, subject to consultation and regulatory approval.

TNT has confirmed that the 660 staff currently employed at TNT Fashion will not be subject to restructuring as a result of the merger, nor are any changes to agreements with current customers and suppliers anticipated.

The move to sell this branch of TNT forms part of a wide reaching restructure of the business necessitated by the unexpected failed merger with UPS in January 2013. The European Commission vetoed the acquisition of TNT by USA-based UPS on the grounds that it would unfairly diminish competition in the parcel delivery industry. As a result, TNT has divested from China and implemented staff cuts across its operation in order to address its flagging finances.

The combination of Belgian fashion logistics specialist Belspeed and the much larger Turkish logistics player Netlog is likely to be a major new player in fashion logistics, serving the lifestyle supply chain in Europe, the Middle East and Asia.

The UK element of TNT fashion will be retained by TNT Express and incorporated into TNT Express UK and Ireland.