UK consumer logistics company in receivership
Endeva, a major UK consumer electronics logistics provider and part of rentals company Boxclever, has been placed into administrative receivership by its largest creditor, WestLB, the German state owned bank. Boxclever, which is owned by Japanese bank Nomura and UK media company Granada, has about 2 million customers throughout the UK renting or leasing domestic equipment such as televisions or fridges. Whilst its logistics division has been losing money, it is understood that the rentals part of the business is still in profit.
Endeva employs over 2,500 people including 1,500 technical staff, has over 1000 vehicles and its contact centre responds to over 3 million calls each year. It has a national distribution centre and 18 regionally based distribution, repair and refurbishment centres. The company was originally established to provide in-house logistics services to Boxclever, including installation of appliances, reverse logistics and call centre services. However it diversified into offering services to third party companies, such as Miele, Philips, Whirlpool and Aon, in an attempt to become a revenue driver for the group. However it is understood that instead it became the primary drain on the overall company resulting in major financial problems.
It is also reported that a private equity group, Alchemy Partners, is in talks with WestLB over the possibility of buying parts of Boxclever, including Endeva, for about £200m. A deal, which has been made in conjunction with Endeva’s management, is still under discussion although it is believed that West LB is also considering other options.
