Explainer: What Fastway receivership means for its workers and parcels

The company has 50,000 packages and parcels awaiting delivery

Fastway employed 300 people directly with a further 600 under a part time, contract and franchisee model.

The decision to place delivery company Fastway into receivership came as a surprise to many yesterday.

What happened?

Fastway Couriers was one of Ireland's largest delivery firms. Their vans were a common sight on Irish roads and estates. They were founded in Ireland in 2002, taking advantage of the surge in online shopping due to the covid pandemic lockdowns. At its peak, the company handled more than 25 million parcels annually. On Tuesday, staff were told the parent company Nuvion was entering receivership with work stopping immediately.

The Nuvion Group also includes Parcel Connect and Nügo. The business blamed sustained inflation, rising operating costs and ongoing price pressures across the parcels market, which have made it no longer viable in its current form. 

What does this mean for its workers?

Fastway employed approximately 300 workers directly in a range of roles; however, the company relied heavily on a franchisee model and part-time seasonal workers. It is understood that a further 600+ workers in these roles will also be impacted. The future for them is bleak unless a buyer can be found. Fastway's workers would have relied on work in the run-up to Black Friday and then into Christmas as their busiest times.

What about my packages?

It is understood that up to 50,000 packages were located in Fastway depots and vans awaiting delivery when staff were told yesterday that the company was entering receivership. The company has engaged with a third-party company, which will complete the delivery of the items, but delays are expected.

Fastway had a large number of retailers it worked with, delivering their products for them in Ireland. These retailers were informed of the receivership process and are understood to have arranged alternative delivery companies from this week.

What are my rights as a consumer?

When a consumer orders something for delivery, their contract is with the retailer, not the courier. Goods are the responsibility of the retailer until the buyer takes physical possession of the delivery so it is the retailer's responsibility to address any delay, damage or non-delivery.

Under consumer laws in Ireland, orders should be delivered within 30 days unless otherwise agreed by the consumer and retailer. If the delivery cannot be rearranged within a suitable period, or where the delivery of the goods is no longer appropriate in the circumstances, consumers have the right to cancel their order due to non-delivery and receive a full refund, including delivery fees. The retailer must refund the consumer within 14 days.

Why has this happened?

Fastway Couriers operates in a very competitive market. Despite the surge in parcels and packages and the continued rise in online sales, most countries, including Ireland, are well served by delivery firms. There have also been declining volumes post covid. 

Semi-state company An Post has moved strongly into the parcel market and has a network that other operators can struggle to compete with. Amazon, one of the world's largest retailers, has also established its own logistics network in Ireland, along with delivery vans and warehouses. It is understood that a sale process was sought for the Fastway company, but was not successful.

Could a buyer be found?

Mark Degnan and Brendan O’Reilly of Interpath Advisory have been appointed as receivers and are expected to explore all potential sale options, including depots, assets, and brand rights. Expressions of interest may be considered as part of the process. However, a buyer for the company as a whole is unlikely.