Following the administration of delivery company Tuffnells Parcels Express, more than 2,000 employees will be laid off. After failing to find additional funding, the Sheffield-based company has engaged joint administrators at Interpath Advisory.
According to Interpath, the bulk of Tuffnells’ 2,200 employees who operate at its 33 UK depots would lose their jobs.
Only 128 employees have been kept on. Its depots and transport hubs have all been shut down.
Under the ‘The Big Green Parcel Machine’ name, Tuffnells offers delivery services to more than 4,000 firms in the UK, according to Rick Harrison, joint administrator.
Unfortunately, the UK parcel delivery business is extremely competitive, and this, along with recent considerable inflation throughout the company’s fixed cost base, has put a lot of strain on cash flow.
Mr. Harrison acknowledged that the information would be “devastating” for the staff. “Unfortunately, we have had to lay off the majority of staff because deliveries have been suspended and there is no chance they will resume soon.”
A pre-pack administration sale is not on the cards
Harold Tuffnell started transporting goods in 1914 after spending just £100 on a horse and waggon, thereby establishing the Sheffield-based delivery company.
On Friday, Tuffnells’ drivers were asked to return to their depots. At today’s lunch hour, the company’s bankruptcy was also disclosed to the staff.
Tuffnells serves about 4,000 companies, including Black Circles and Evans Cycles. The worldwide shipping juggernaut took pride in its ability to handle big, bulky, and heavy packages.
Transport hubs and depots have been forced to close temporarily, according to customers. The pickup of the parcels will be scheduled over the next few days, according to Howard Smith of Interpath.
Connect Group, formerly known as WHSmith News and then changed its name to Smiths News, was the owner of Tuffnells. In 2020, Broad Oak Support Services, a specialist in turnaround investments, purchased the company for £15 million.
The delivery company reported £178 million in yearly sales and £5.5 million in pre-tax profit for the year ending in December 2021.
However, through court documents published on Friday afternoon, law firm TLT LLP announced its intention to appoint administrators on behalf of Tuffnells Parcels Express Limited.
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With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.