Pitney Bowes to liquidate e-commerce logistics unit in bankruptcy

Shipping company Pitney Bowes Inc. has agreed to liquidate a significant portion of its e-commerce business, including its e-commerce logistics unit, as part of its bankruptcy filing under two deals with Hilco Global and bondholder Oaktree Capital Management.

Under the deal, Hilco subsidiaries agreed to buy a controlling stake in the e-commerce business and then sell it piecemeal, according to a statement from Pitney Bowes. Oaktree, which holds promissory notes issued by Pitney as well as secured claims against the e-commerce businesses, agreed to support the bankruptcy case, according to court and regulatory filings.

The e-commerce entities filed for Chapter 11 bankruptcy on Aug. 8, listing debts and assets of up to $500 million each.

Chapter 11 is typically used by businesses to reorganize and continue operations, but it can also allow for an orderly liquidation.

The company’s global e-commerce business lost $136 million in 2023, Pitney said. The deal allows Pitney to streamline its operations, interim CEO Lance Rosenzweig said in a statement. The company’s SendTech and Presort segments will continue to operate normally, Pitney said.

As part of the e-commerce bankruptcy proceeding, Pitney will lend the company $45 million to cover bankruptcy costs, the company said.

The case is DRF Logistics LLC, 24-90447, United States Bankruptcy Court, Southern District of Texas (Houston).