Britain’s biggest cycle courier firm has been forced to axe more than 100 members of staff after plunging into administration, due to long term funding issues.
Zedify previously received backing from part of Barclays Bank but has still been unable to raise sufficient capital to continue operation. Outspoken Logistics Limited, trading as Zedify, has now appointed joint administrators with Interpath selling off the company’s assets.
Zedify previously had a substantial pool of partners, including major fashion Retailer Zara, and operates from 10 logistics hubs across the UK. The firm opened its latest hub in Birmingham at the start of November. The company’s bases in Cambridge and Edinburgh are set to remain operational after the arrival of the administrators, although 105 members of its workforce have now been made redundant as a result of the situation, according to reports. Its Bristol hub is operated by a different legal entity and also continues to trade.
"Zedify was considered a pioneer within the logistics market, being the UK's first cargo bike delivery service with a zero-emission, last-mile delivery model," Interpath’s Ravi Patel said.
"We are working to explore all options and are seeking buyers for the business and its assets, including its fleet of electric bicycles and their associated intellectual property, as well as the Zedify brand."
Zedify was founded in 2018 and the company’s aim was to be active in 50 cities nationwide within its first few years in business. It claimed to operate the largest network of its kind within Britain.
"We understand news of the Company’s insolvency will be devastating to its team of employees," Steve Absolom, Interpath's managing director, added. "We’ll endeavour to provide support to those impacted by redundancy, including assisting them with claims to the Redundancy Payments Service."
Last year, London-based cycle courier PedalMe also entered administration after failing to reach a deal with the British tax authorities over outstanding debts. The business was later able to continue trading after being bought back from the appointed administrators. PedalMe was set up in 2017 and uses e-cargo bikes from Dutch company Urban Arrow to deliver an array of goods around the capital.
"Obviously this has been an incredibly difficult decision, but importantly, the shareholder buyout means we can continue without any interruption in service for our customers," PedalMe co-founder Ben Knowles said at the time of the business's initial administration.
"The increased liquidity that comes with this process means we can secure the future of Pedal Me, and move forward with our plans for improving service during busy times and the tech improvements we’ve got lined up. We set Pedal Me up with the intention of transforming cities and I am absolutely determined that we continue our mission to do so."
