DX Group has acquired some of the assets of Business Direct (BD) after the Rugby-based express delivery firm entered administration at the end of last month. David Gilbert and Kim Rayment, business restructuring partners at BDO Stoy Hayward, were appointed as joint administrators on 29 August, with a sale of BD's In-Night and PX Worldwide divisions to DX going through on the same day, saving 90 jobs. The In-Night division accounts for 50% of BD Group's turnover (2007: £15.9m) and consists of ParcelXchange (PX), the firm's network of remote drop boxes for in-night packages In-Boot, a direct delivery service to and from vehicle boots and PUDO, which consists of pick up and drop off manned service counters throughout the UK.
The PX Worldwide business focuses on the licensing of the PX technology to interested parties. Following the breakdown of a planned MBO for the remaining arm of BD, the Specialist Division, which has a number of niche businesses including two-man delivery, BDO is now looking to dispose of the assets of this division 50 jobs have been lost as a result. Speaking to MT, Paul Carvell, CEO of Business Direct, says: "We were basically victims of our own success. We were growing faster than we could keep up with we were seeing growth of 30% to 40% and were unable to finance that growth in the current economic climate." On 30 July, the board appointed BDO to seek a sale of all or part of the group to secure its long-term funding. According to Carvell, 16 interested parties came forward, including DX.
However, in an announcement to the Stock Exchange prior to entering administration, the BD board said: "The discussions with regard to the possible sale... cannot be completed within a timeframe during which the board believes the company will have sufficient cash and borrowing facilities to continue trading." Prior to this, the board declared that the group had "incurred a net loss of £4.2m during the year to 31 January 2008", and at that date, the group's "current liabilities exceeded its current assets by £3.8m". Mike Stone, chief operating officer at DX, says: "Our intent is to continue the business, but on a more stable footing than they've been able to operate on for the past six months due to lack of finance." He adds that the move consolidates DX's position in the B2B market.
Carvell insists it is business as usual, albeit under a different owner. He says: "We're currently trading as DX Business Direct and I am still CEO. All of our customers and subcontractors have moved across and we're still in the same premises." Carvell has held senior roles at Business Post, Christian Salvesen, Penske Logistics, United Transport Europe and TDG Beck & Pollitzer.
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