TNT Express is looking to offload the Netherlands-based TNT Fashion, which employs 660 people.
The firm wants sell the unit by the end of the year.
TNT’s U.K. fashion business is not part of the sale, as it's currently being integrated into the company’s U.K. and Ireland business.
According to a release, any sale will not impact the business and customers and suppliers will all maintain their current agreements. Companies interested in the purchase must place their initial bids this month, according to reports. The names of potential suitors have not been identified.
In the second quarter, TNT Express’ reported revenues fell by 3.1 percent, year over year, to 1.7 billion euros, and operating income showed a loss of 280 million euros. The company is working to turn this around with its Deliver!
restructuring program, which aims to find the company 220 million euros in improvements by 2015.
“We have attractive market positions that we continue to develop thanks to our highly committed employees. But there are also many challenges – and trading conditions remain difficult. The Deliver! program is therefore vital to improve our performance,” TNT’s new chief executive officer, Tex Gunning, said at the time. “We are making good progress in its implementation. We announced the restructuring of our Italian operations in June and will realize important milestones for our overhead and operational process improvement projects after the summer. We should start seeing benefits from Deliver!
as the program gains momentum.” - Jon Ross