Australian parcel delivery scaleup Sendle has abruptly ceased operations, leaving thousands of small businesses in disarray just five months after a major international merger. The company halted all new bookings effective January 11, 2026, citing undisclosed reasons that are now linked to a severe financial crisis at its parent company. This sudden shutdown has created significant logistical and financial challenges for its loyal customer base, who relied on its competitive services.
An Abrupt Halt to Operations
Customers were informed of the shutdown through a terse email and a banner on the company's website, which offered no detailed explanation for the decision. The communication stated that future bookings were cancelled and parcels already in transit would be delivered only at the discretion of delivery partners. Sendle apologized for the disruption but directed customers with existing delivery inquiries to its partners, effectively ceasing its own customer support.
The Impact on Small Businesses
The closure has blindsided countless small e-commerce businesses that depended on Sendle as a cost-effective alternative to Australia Post. Many entrepreneurs reported being thousands of dollars out of pocket and were forced to scramble to rebook shipments with other carriers. The service was particularly popular for its competitive pricing and lack of residential surcharges, making its sudden disappearance a significant blow to online retailers.
The Unraveling of a Strategic Merger
This collapse follows a seemingly promising merger in August 2025, which combined Sendle with US-based firms FirstMile and ACI Logistix to form a new parent company, FAST Group. The new entity was positioned as a dynamic global logistics ecosystem for e-commerce, with operations spanning the US, Australia, and Canada. The deal, backed by Sydney-based Federation Asset Management (FAM), was intended to level up Sendle's offering by providing access to expanded infrastructure.
Financial Crisis at the Parent Company
The merger's foundation quickly crumbled when FAM discovered "significant deficiencies" in ACI Logistix's financial statements post-acquisition, exposing critical due diligence lapses. This revelation prompted the investment firm to freeze redemptions in its fund, which had 64% of its capital tied to FAST Group. The parent company's financial distress was compounded by a reported $20 million debt owed to DoorDash and failed attempts to secure emergency financing.
The Road Ahead
Despite a A$12 million emergency capital injection and leadership changes, FAST Group is now reportedly seeking A$60 million in debt financing and faces a potential Chapter 11 bankruptcy filing in the United States. As the parent company teeters on the brink of collapse, competitors are already moving to capture Sendle's abandoned market share. The future remains uncertain for the company's assets and employees, who were given no warning of the impending shutdown.
The sudden demise of Sendle serves as a stark illustration of the risks associated with rapid corporate consolidation and inadequate due diligence. What began as a strategic international expansion quickly devolved into a financial catastrophe, leaving a trail of disruption for small businesses. This event underscores the volatility within the competitive logistics sector and highlights the profound impact that corporate failures can have on the wider business community.