Last-mile provider FAST Group’s post-merger Just Got a meltdown

 

What began in August 2025 as a bold consolidation in the booming last-mile delivery sector ended just five months later in crisis. Three companies — Sendle (Australia), FirstMile (U.S.), and ACI Logistix (U.S.) — merged to form FAST Group, a unified logistics platform aimed at competing with established carriers and serving e-commerce businesses worldwide. The deal was backed by private equity investors, notably Sydney’s Federation Asset Management.

At the time, FAST Group promised scale, expanded network reach across the U.S., Australia, Canada, India and the Philippines, and synergies that would lower costs and strengthen parcel delivery options for small and mid-size merchants.

But by January 2026, just months after launch, the venture collapsed spectacularly. Sendle — once a disruptive force in cost-effective parcel delivery — abruptly halted all new pickups and deliveries, leaving small businesses scrambling for alternatives and customers unsure about parcels already in transit.

What Went Wrong?

🔎 Due Diligence Gaps & Financial Deficiencies
Federation Asset Management froze redemptions in its $100 million Federation Alternatives Investment Fund II after discovering “significant deficiencies” in the financial disclosures of ACI Logistix after the merger completed. This suggested that the due diligence process had missed critical problems in ACI’s books.

💰 Funding Issues & Emergency Aid

Following the discovery, Federation injected about $12 million in emergency capital to stave off collapse and replaced key leadership, including the CFO. A chief restructuring officer was also hired to salvage operations.

📉 Failed Financing & Rising Obligations

Despite those efforts, FAST Group struggled to secure an additional $60 million in debt financing. Potential lenders valued its debt at steep haircuts (around 50 cents on the dollar), reflecting deep doubts about the company’s financial health. Reports also indicate a significant unpaid bill — including approximately $20 million allegedly owed to DoorDash — further straining credibility and cash flow.

❗ Operational Fallout

By early January 2026, FAST Group essentially began winding down operations. Sendle’s abrupt pause on new deliveries disrupted supply chains for hundreds of small businesses, forcing them to rapidly switch carriers and absorb higher costs.

Taken together, these events painted a clear picture: the merger was executed too quickly, with inadequate attention to core financials and integration risks. What investors and customers thought would be a logistics powerhouse instead revealed deep operational and accounting vulnerabilities once the dust settled.

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Lessons from the Collapse

• Hype Can Mask Risk: A high-profile merger and strong market demand don’t guarantee success if the underlying companies have flawed finances or incompatible operations.

• Due Diligence Matters: Thorough review of financial statements and operational data isn’t optional — skipping it can unravel a deal before it even delivers value.

• Integration Is Hard: Merging cultures, systems, and logistics networks is complex. Without solid planning and risk buffers, even promising expansions can fail fast.

🚨 In the Money Cemetery of failed ventures, FAST Group now joins other overambitious deals that swallowed millions in capital — reminding investors and operators alike that speed should never outpace scrutiny.