Fastway operation run 'like something out of a Netflix documentary', Dáil told
The ripple from the collapse of delivery firm Fastway continues to be felt. Fastway handled 25m parcels annually. File Picture: Sam Boal/Collins Photos
Franchise operators within the Fastway courier group were asked to submit to lie detector tests and the way the operation was run was "like something out of a Netflix documentary", the Dáil has heard.
Nuvion Group, the parent company of Fastway and Parcel Direct, went into receivership last week. Some 300 workers have been directly affected, and close to 700 subcontractors and franchise delivery workers were left in limbo.
Fastway handled 25m parcels annually. Just two years ago, it invested €5m in its depot in Little Island in Cork — the second-largest courier base in the country.
Logistically, there are huge fears other delivery companies won’t now be able to accommodate thousands of customers seeking order fulfilment ahead of Black Friday and Christmas.
In the Dáil on Thursday, Fianna Fáil TD Tony McCormack questioned whether there was "fraud or serious mismanagement" ahead of the company's collapse.
When asked if it was investigating, a spokesperson for An Garda Síochána said that it does not comment on named entities.
Mr McCormack told the Dáil he has been in contact with those directly affected since the closure, and what he has heard is deeply troubling.
"Over the past two years, conditions within the company have clearly deteriorated. Many people now question whether the takeover of Fastway in 2022 was a case of vulture capitalism and whether fraud or serious mismanagement was involved," he said.
"Many were struggling just to keep their businesses afloat while waiting on money that never came. I have also been told of polygraph machines, that is, lie detector machines, being used in franchise interviews, and of large cash payments being requested as part of the purchase process.
"This raises serious questions about transparency, legality, and oversight."
He added: "What is particularly cruel is that franchisees who only joined the company recently had made large financial investments, often borrowing heavily or using personal savings to buy into what they believed to be a growing business. They are now left with huge losses and no way to recover the money".
"One franchise owner I spoke to is now facing personal insolvency. He is owed around €50,000 by the company and owes roughly the same amount to Revenue," he said.
"He had been in the process of selling his franchise earlier this year, hoping that a busy Christmas and new year period would allow him to clear his debts and move on. Instead, with the closure, he is left with nothing but debts. This is increasing stress and his livelihood is gone.
"The more I hear about how the system was run, the more it sounds like a pyramid scheme. In fact, it sounds like something you would see in a Netflix documentary rather than in a modern Irish business."
Tánaiste Simon Harris said the situation with Fastway is "extremely concerning" and that, while he did not want to comment on individual claims, he would flag concerns with enterprise minister Peter Burke.
"My thoughts ... are with all of those affected by the receivership. This news is extremely concerning. [Mr McCormack] has given us tangible examples of the human impact of this issue.
"It is hugely concerning for all involved. While there is never a good time for something like this to happen, it comes at a particularly difficult time of the year.
"I will not comment too much for fear of affecting processes that are in place or that could be put in place in due course. I would not want to cut across the independence of such processes. However, I will make sure that the deputy's comments are brought directly to the attention of the minister."
A spokesperson for Mr Burke declined to comment on whether concerns had been raised at government level about the running of the company.
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