Business Direct enters administration, units bought by DX Group

Source: Supply Chain Digital

Date :02/09/2008 09:04:01

Business Direct, the courier service business, announced yesterday, September 1, that DX Group Ltd has acquired its In-Night and PX Worldwide Licensing operations.

The firm’s collapse comes as delivery companies suffer from high fuel prices and falling spending. Last week, delivery firm Amtrak went into administration with the possible loss of 1,000 jobs and the poor performance of City Link in the second quarter has contributed to Rentokil, its parent group, cutting its profit forecast four times since December.

DX bought the Parcel Exchange and In-Night parts of the business yesterday from the administrators BDO Stoy Hayward.

Mike Stone, COO of DX, said that the company planned to keep on the 80 people employed in these divisions but the rest would lose their jobs. “For DX, high oil prices don't have a huge impact,” he said. “Our locker system means we are less reliant on fuel than other delivery companies.”

DX hopes to develop the business for the direct-to-consumer market, in which customers pick up purchases from secure lockers rather than rely on deliveries.