Bristol firm Huboo saved from collapse by buy-out

Bristol logistics tech company Huboo has been saved from administration and bought by an investor consortium, the firm has announced.

The firm, perhaps best known in the city for sponsoring Bristol City football and Bristol Bears rugby, issued an alert on Christmas Eve, telling investors and customers that it was appointing administrators, after days of disruption in the run up to the festive holiday.

But now, the firm has announced it has been bought out by an ‘investor consortium’ led by two capital investment firms, and that this marked a ‘new chapter of growth’ for Huboo.

The firm was set up in 2017 by co-founders Martin Bysh and Paul Dodd. The firm offers ‘eCommerce fulfilment technology and services’ – a company which takes care of the orders, shipping and deliveries for firms that sell online, ranging from smaller merchants to global brands.

Huboo has grown rapidly in the years since the pandemic, and now operates across Europe with a series of ‘innovative micro-warehouses’ across the continent, with its head office and base in Bristol. It employs 600 people across the company.

Back in February 2022, Huboo announced it would be the main sponsor for all five of Bristol Sport’s teams – men’s and women’s football and rugby, along with the Bristol Flyers basketball side – in a groundbreaking deal that was a first for Bristol.

But in the run-up to Christmas 2024, there was trouble for the firm, and in the days before Christmas, Huboo’s customers began reporting issues with pick-ups and deliveries. One business owner, who declined to be named, told Bristol Live that in the week before Christmas it appeared Huboo had major problems.

“On December 20, Huboo told us there were ‘technical problems’ with Royal Mail,” he said. “They said they’d switched to Evri and our orders were ‘fulfilled’ – but here’s the thing: none of these parcels have actually been collected from their warehouse. Looking at recent reviews, loads of other businesses are having the same problem.

“Hundreds of people work at Huboo in Bristol – their jobs could be at risk. Thousands of small businesses like mine have their stock sitting in Huboo’s warehouses and this is happening at the worst possible time – right in the middle of the Christmas period,” he added.

On December 20, firms who distribute through Huboo were issued with a ‘pre-insolvency’ warning, but on Christmas Eve they were told the company had gone into administration, but a rescue deal had been put together.

Today, Huboo announced that rescue deal as ‘fresh investment’, saying it had ‘secured its future’, while admitting that ‘undeniably, the logistics sector has recently faced challenges’.

“Huboo, the innovative eCommerce fulfillment technology company, has secured its future through a sale to an investor consortium led by Baaj Capital and Atalla Capital (AB Capital),” a spokesperson said. “This marks a new chapter of growth and opportunity for the Bristol-based logistics technology and fulfilment leader.

“Huboo has grown rapidly since it was founded in 2019 but faced increased headwinds due to an evolving eCommerce market. The transaction with ABC marks a transformational opportunity for the business. It positions Huboo to capitalise on the rapidly expanding eCommerce market, which is forecast to grow from $6.09 trillion in 2024 to $8.09 trillion by 2028, representing a key milestone on its journey towards becoming Europe’s leading provider of tech-enabled eCommerce fulfilment solutions,” they added.

“AB Capital plans to support Huboo’s continued expansion across the UK and Europe, supporting Huboo as it works to meet merchants’ increasing demands for fast, cost-effective, and scalable logistics,” a Huboo spokesperson added.

Jas Singh, the chief executive of Baaj Capital, and co-founder of AB Capital, said: “We’re excited to be working with the team at Huboo. The business has really made its mark in the e-commerce sector in recent years. Huboo sits comfortably in the range of diverse companies under the Baaj umbrella. This deal continues the Baaj strategy of providing finance to support existing management and staff to grow and scale their businesses.”

Huboo’s co-founder Paul Dodd said the buy-out would keep Huboo going. “This investment ensures the continued operation of Huboo, safeguarding jobs and partnerships with our valued suppliers and clients,” he said.

“We are committed to working closely with all stakeholders during this period of transition. Our goal is to become the preferred logistics partner for ambitious merchants and brands seeking to scale their businesses,” he added.