Pitney Bowes Inc. (NYSE: PBI), a global shipping and mailing company, is selling a controlling interest in most of its US global e-commerce segment (GEC) to Hilco Commercial Industrial, a division of Hilco Global.
Why did the company make this move? It’s to facilitate the liquidation of certain Global Ecommerce entities under Chapter 11 bankruptcy protection.
Hilco Global is known for assisting companies in maximizing the value of their assets and efficiently winding down operations.
How did Pitney Bowes get to this point?
After a thorough strategic review with the help of independent legal and financial advisors, Pitney Bowes’ board of directors decided that exiting the GEC segment was the best move for the company’s shareholders and other stakeholders.
The GEC segment had struggled to achieve profitability for several years due to challenging economic and industry conditions, with losses reaching approximately $136 million in 2023.
This exit strategy is expected to eliminate a large number of these losses. Could this latest move by Pitney Bowes open the door for other major industry players?
Industry shake-ups
Is this a broader trend of businesses reevaluating their operation?
These moves come as often businesses have profitability challenges, experience steep market competition, or have the need to refocus on core business areas.
This latest business move by Pitney Bowes is the latest in a few industry “shake-ups”. In May, Uber Eats acquired Delivery Heroes’ Foodpanda.
What does the market say?
ShipNetwork, a company that provides e-commerce fulfillment and logistics services worldwide, took to social media in reaction to Pitney Bowes’ e-commerce logistics operations.
“With Pitney Bowes selling its e-commerce fulfillment services, many businesses are facing important decisions about their logistics strategies. This transition is more than just a change in provider—it’s a chance for brands to evaluate and optimize their fulfillment operations.”
US e-commerce logistics market
Mordor Intelligence reports the e-commerce logistics industry is one of the fastest-growing industries in the US. “It is driven by the continuous advancement of logistics technologies brought about by automation, robots, wearables, drones, self-driving vehicles, cloud computing, the Internet of Things (IoT),” reads the report.
Asendia offers a range of international e-commerce and mail delivery services. The company services fashion, apparel, health and beauty, marketplaces, and food and supplements. Key destinations for e-tailers include Asia, Europe, the USA, and Canada.
In its recent market watch, the company highlighted two findings in the US e-commerce market:
- 73% of Americans identify as regular online shoppers.
- 65% of US consumers use retailer subscription services.
Photo Credit: Canva
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About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
