After several months of searching for a buyer, international courier TNT Express and logistics firm has announced its plans to sell its specialised fashion supply chain business TNT Fashion Group B.V.
Subject to consultation and regulatory approval, the fashion branch of the Dutch courier company will be bought by a consortium formed by Belgian fashion logistics firm Belspeed and Turkish supply chain specialists Netlog Group. Completion of the sale is expected by the end of June this year. The UK arm of the fashion group will be downsized and merged with the core TNT UK business.
In spite of its necessity, this is likely to be a difficult move for TNT, whose fashion branch has developed a strong reputation since its foundation in the UK and subsequent expansion across Europe and Asia. The sale forms part of TNT's continued restructure following the unexpected EU veto of the company's planned merger with UPS in January 2013.
In a statement yesterday, the TNT said that no changes were expected to be made to TNT Fashion's 660 strong workforce as a result of the transaction and that the terms and conditions of agreements with current customers and suppliers would not be affected.
The two companies due to take over the operation combine niche fashion expertise and more large-scale logistics experience. Belspeed has been providing fashion logistics for over 30 years and generates an annual revenue of EUR 35M while Netlog Group is one of Turkey's largest logistics firms, with annual revenues over $500 and 4,5000 employees.