DHL has resumed its deliveries for the German mail order company Neckermann after its decisionto suspend them due to Neckermann’s insolvency caused a dramatic parcel backlog, Deutsche Post DHL
spokeswoman Dunja Kuhlmann today told CEP-Research.She confirmed that DHL had suspended its deliveries of parcels on Neckermann’s behalf on Tuesdayand Wednesday but resumed the service again on Thursday, following internal talks. She declined togive the reasons for the change, and said that Neckermann’s insolvency administrator wasresponsible for further procedures. The situation would also depend on further developmentsregarding Neckermann’s future.
The insolvency administrator Michael Frege told German financial newspaper Handelsblatt that DHLhas started to deliver the parcels on behalf of Neckermann again, at least for the time being,after they threatened to pile up in front of Neckermann’s headquarters.
Neckermann managed to agree with suppliers and trade-credit insurers that the ordered goodswould be delivered to customers, with the parcel backlog expected to be resolved in the next fewdays. “The product flow is secured,” Frege said.
DHL had previously decided to suspend deliveries, fearing that it would have to cover theexpenses of its insolvent customer. In 2010, Neckermann paid €113 million for the delivery ofproducts, with an estimated €15 million in postage for catalogue deliveries added on top. On anormal day, some 30,000 parcels are dispatched from Neckermann’s warehouses.
A decision is expected in the coming weeks on whether the insolvent mail-order business has afuture and how its financial restructuring might be achieved. Some of its individual units, such asfurniture sales and distribution of technical products, are still profitable. Trade with otherdistribution partners offering their products via Neckermann’s platform is also growing atdouble-digit rates, according to a report by the German newspaper Frankfurter Rundschau.
About a week ago, Neckermann filed for bankruptcy after its owner, the US financial investor SunCapital, axed its funding. According to the company’s latest statements, around 2,250 jobs at itssites in Frankfurt and Heideloh are at risk.
According to Handelsblatt, the insolvency of Neckermann could result in a financial impact of upto €100 million for DHL, which took over the groupage business of the German mail-order businessNeckermann and its sister company Quelle in 2005. Despite Neckermann’s insolvency, DHL’s parentcompany Deutsche Post still expects good figures for this year.
