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// Workers AI · dad joke modeWhy did Clipper Logistics go to therapy? It had a lot of baggage to clip through.

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Clipper Logistics plc
TypeSubsidiary
IndustryLogistics
Founded1992 (1992)
FounderSteve Parkin
Defunct2022 (2022)
FateAcquired by GXO Logistics in 2022
SuccessorGXO Logistics
Headquarters
Holbeck, Leeds, UK
Area served
Europe
Key people
[1]
RevenueIncrease £696.2 million (2021)[2]
Increase £39.8 million (2021)[2]
Increase £21.7 million (2021)[2]
Number of employees
9,148 (2021)[2]
Subsidiaries
  • Servicecare Support Services Limited
  • RepairTech Limited
  • Northern Commercials (Mirfield) Limited
  • Stormont Truck and Van Limited
Websiteclippergroup.co.uk

Clipper Logistics plc was a British retail logistics company which served retailers selling fashion, tobacco, alcohol and other high-value goods in the UK and Europe. It operated 47 sites across Europe and was based in Leeds.[3] The company was listed on the London Stock Exchange until it was acquired by GXO Logistics in May 2022.

History

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Early history

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Steve Parkin founded Clipper Group in 1992 with one van delivering clothing for fashion stores. The company won a number of contracts in the early years with retailers such as Huddersfield-based Bonmarché and Sir Philip Green which helped it to become established in the transport, haulage and warehousing market.[4] The company made a number of acquisitions in the 2000s including DTS logistics Ltd, Gagewell Transport Ltd and Northern Commercials (Mirfield) Ltd [5] In 2014 the company was floated on the London Stock Exchange with a valuation of £100 million.[6]

Takeover Attempt

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In November 2019, investment fund Sun Capital Partners, Inc. announced it was considering making a bid for the company, supported by founder and executive chairman Steve Parkin.[7] Discussions regarding a possible offer took place between the parties, and the views of a number of independent Clipper shareholders were sought. However, the board and Sun Capital were unable to agree on terms, consequently, both sides agreed to terminate discussions.[8]

Coronavirus pandemic support

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In March 2020, the company was given a contract by the NHS Supply Chain for the delivery of personal protective equipment to NHS trusts and care homes.[9] This was considered to be controversial amid a scandal over the appointment of COVID-19 contracts in the United Kingdom and alleged cronyism in the British government, as Parkin is a top Conservative Party donor who has attended Leader's Group meetings ("the premier supporter Group of the Conservative Party") and donated £725,000 to the Conservative Party.[10] The company reported a 38.2 percent rise in interim pre-tax profits aided by "a successful Black Friday weekend" and was helped by a "significant increase in supporting Supply Chain Co-ordination (NHS) with the storage and distribution of PPE", processing "over 7.4 billion items of PPE on the NHS contract".[11]

Charity

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In May 2020, the company donated a refrigerated trailer to the food bank run by Leeds United Foundation and Leeds City Council.[12]

Takeover

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On 28 February 2022 GXO Logistics made a recommended offer for the company.[13] In May 2022, it was announced the acquisition had been completed.[14] According to GXO this will vastly increase the scope of its reverse logistics services, and provide a bridgehead into Germany. Clipper has been strong in repairs and returns logistics, especially in consumer electronics, and repaired around 1.5 million items during the year ended 30 April 2022.[15]

Operations

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It operated a distribution centre for Superdry in Burton-upon-Trent which was equipped with 46 Hikrobots, 1,000 transportable pick-wall modules and twelve pick-to-light stations.[16] In 2016, Clipper and John Lewis Partnership formed a joint venture to provide click and collect services to high-street retailers.[17]

In June 2020, it was announced that clipper would be taking over the logistics operation for Arcadia Group from DHL.[18]

Corporate Affairs

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Financials

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Companies Finances
YearRevenue (£m)Operating Income (£m)Net Profit (£m)
2016[19] 290.33 14.53 10.34
2017[20] 340.13 17.47 12.47
2018[21] 400.12 20.83 14.28
2019[22] 460.17 19.48 13.41
2020[23] 500.67 31.43 16.19
2021[2] 696.20 39.77 21.66

Controversies

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Staff at the company warehouse in Ollerton, Nottinghamshire complained in March 2020 that they were "crammed into corridors" and given no hand sanitiser.[24]

Sponsorship

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Clipper was a sponsor of Leeds United football club until its acquistion by GXO.[25]

References

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  1. ↑ "Team Members". Retrieved 9 July 2020.
  2. 1 2 3 4 5 "Annual Report (2021)" (PDF). Clipper Logistics plc. 19 February 2021. Retrieved 19 February 2021.
  3. ↑ "Clipper Logistics CEO: We're 'agile and able' and the crisis has demonstrated our capabilities". Proactive Investor. 24 April 2020. Retrieved 16 May 2020.
  4. ↑ "PARKIN'S ROUTE TO SUCCESS..." Yorkshire Post. 14 June 2011. Retrieved 20 June 2020.
  5. ↑ "This year starts well for Clipper Logistics Group". 18 May 2007. Retrieved 22 June 2020.
  6. ↑ "Leeds' Clipper Logistics expected to raise £100 million from IPO". 30 May 2014. Retrieved 2 March 2022.
  7. ↑ "Clipper Logistics founder Steve Parkin teams up with Sun Capital Partners to prepare takeover bid". Motor Transport. 22 November 2019. Retrieved 11 December 2023.
  8. ↑ "The price wasn't right: sun capital pulls out of clipper logistics takeover". The Load Star. 20 January 2020. Retrieved 20 June 2020.
  9. ↑ "Retail logistics firm put in charge of crisis-hit PPE deliveries". Health Service Journal. 31 March 2020. Retrieved 16 May 2020.
  10. ↑ Ahmed, Nafeez (2 April 2020). "Disaster Capitalism: Conservative Party Donor Cashes in on UK Government-Made PPE Shortages Amidst COVID-19 Crisis". Byline Times. Retrieved 5 December 2020.
  11. ↑ Gosden, Emily (4 December 2020). "PPE contract puts wind in Clipper's sails". The Times. Retrieved 5 December 2020. (subscription required)
  12. ↑ "Clipper Logistics partners with Leeds United to support Food bank". SHD Logistics. 1 May 2020. Retrieved 16 May 2020.
  13. ↑ "Leeds-based Clipper Logistics set to be acquired by New York listed GXO Logistics after deal is agreed". www.yorkshirepost.co.uk. 28 February 2022.
  14. ↑ "GXO completes Clipper Logistics acquisition following court approval | Financial News". www.lse.co.uk. Retrieved 24 May 2022.
  15. ↑ "GXO eyes improved 'returns' as Clipper buy can boost reverse logistics offering". Loadstar. 9 November 2022. Retrieved 12 November 2022.
  16. ↑ "Superdry ramps up robotics in Burton DC with Hikrobot". Logistics manager. 6 May 2020. Retrieved 16 May 2020.
  17. ↑ "John Lewis and Clipper Logistics form joint venture company to deliver click and collect services". 3 November 2016. Retrieved 27 June 2020.
  18. ↑ "Clipper Logistics to replace DHL Supply Chain on Arcadia Group contract". 16 June 2020. Retrieved 8 July 2020.
  19. ↑ "Annual Report 2016" (PDF). Retrieved 11 March 2021.
  20. ↑ "Annual Report 2017" (PDF). Retrieved 11 March 2021.
  21. ↑ "Annual Report 2018" (PDF). Retrieved 11 March 2021.
  22. ↑ "Annual Report 2019" (PDF). Retrieved 11 March 2021.
  23. ↑ "Annual Report 2020" (PDF). Retrieved 11 March 2021.
  24. ↑ "Coronavirus: Clothing warehouse 'putting lives at risk'". BBC. 31 March 2020. Retrieved 16 May 2020.
  25. ↑ "Clipper extends Leeds United sponsorship deal". 10 March 2017. Retrieved 27 June 2020.
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  • Official website
  • Business data for Clipper Logistics Plc:
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