E-Commerce division of shipper Pitney Bowes to liquidate and shut down

Global shipping company Pitney Bowes Inc. announced plans to wind down operations for the company’s E-Commerce division.

In an August 8 release, Pitney Bowes said that a majority interest of the company’s Global E-Commerce (GEC) division has been sold to Hilco Commercial Industrial in order to facilitate an “orderly and expeditious wind-down” of operations through the Chapter 11 bankruptcy process.

The GEC division wind-down is expected to be completed by early 2025.

Pitney Bowes pointed to continued GEC losses as a reason for shutting down the division.

“Notably, the GEC segment had been struggling to achieve profitability over the past several years in the face of macroeconomic and industry headwinds. The Company expects this exit path to eliminate substantially all of the losses associated with GEC, which were equal to approximately $136 million for the year ended December 31, 2023. Pitney Bowes is committed to ensuring that this process is as seamless as possible for GEC employees, customers, partners and vendors,” Pitney Bowes said.

“When the Company announced our four strategic priorities in late May, we committed to working with speed and urgency to complete a comprehensive review of alternatives for GEC. We are pleased to have delivered on that commitment by concluding a productive review and identifying an exit path for GEC that provides for an orderly and efficient wind-down of the business, which will ultimately maximize value for Pitney Bowes shareholders. This path also gives us a clear runway to streamline the Company and increase profitability across our core, cash-generating businesses: SendTech, Presort and Financial Services. In conjunction with our cost reduction efforts and progress on cash optimization, exiting GEC will also allow Pitney Bowes to make substantial progress in deleveraging our balance sheet. With these steps, we will be well-positioned to deliver stronger results in 2025 and pursue enhanced value for shareholders in the years to come,” said Lance Rosenzweig, Interim Chief Executive Officer and member of the Board.