Pass My Parcel to close
The Connect Group has decided to close Pass My Parcel and wind down the associated Parcel Shop network.
In a trading update issued this morning (13 June) covering the period up to 2 June, Connect Group said: “Overall performance since the Group announced its interim results on 1 May 2018 has been extremely disappointing, and the Company has materially reduced its expectations for full year profit before tax.”
In addition to closing Parcel My Parcel, the Group has also announced senior executive changes. Mark Cashmore, Group Chief Executive will be stepping down from his position and David Bauernfeind, Chief Financial Officer, will leave the business with immediate effect. Meanwhile, Tony Grace will join the Group as interim CFO from Monday 18 June. The Connect Group said that Grace has “strong and relevant experience, most recently as CFO at Yodel, and previously in senior roles at Virgin Media and Telewest”.
There was disappointment across the board, with “a material fall in volume and increased cost through Tuffnells peak”, as well as “disappointing” sales of World Cup related products in Smiths News.
The group had this to say about Pass My Parcel: “After a careful review of the prospects for Pass My Parcel, the Group has decided to close the proposition and wind down its associated network of local retailers. We are currently in discussion with key clients to effect as orderly a withdrawal as possible. In the meantime we are working to ensure costs can be removed in line with the profile of the closure of operations.
“The Group plans to make a provision this financial year for all closure and onerous contract costs to be incurred in FY2019. Details of the ongoing contractual requirements and their associated costs will be confirmed at our preliminary results in November.”