British delivery giant crashes into administration placing 2,300 jobs at risk
A stock image of a delivery service
Pexels
Hundreds of businesses face chaos and up to 2,300 jobs are at risk after a leading British delivery company crashed into administration.
Tuffnells has brought in insolvency experts from professional services company Interpath to handle its bankruptcy.
The company was forced into administration after failing to find new owners.
Rick Harrison, managing director at Interpath Advisory and joint administrator, said: “Today’s news will be particularly devastating for Tuffnells’ 2,200 dedicated employees.
The company was forced into administration after failing to find new owners
Wikimedia Commons
“Regrettably, with deliveries suspended and with no prospect of them resuming in the immediate term, we have had to make the majority of staff redundant.
“Our utmost priority will be to provide all those impacted with every support they need in making claims to the Redundancy Payments Office and minimising disruption to customers.”
He added: “Tuffnells is one of the UK’s most recognisable logistics companies, providing delivery services to over 4,000 businesses across the UK under its ‘The Big Green Parcel Machine’ brand.
“Unfortunately, the highly competitive nature of the UK parcel delivery market, coupled with significant inflation across the company’s fixed cost base in recent times, has resulted in it experiencing intense pressure on cashflow.”
A pre-pack administration which would see the company put into solvency ahead of an immediate sale is not on the cards, The Telegraph has reported.
The Sheffield-based delivery company was founded when Harold Tuffnell bought a horse and cart for just £100 and began delivering goods in 1914.
Drivers at Tuffnells were called back to depots on Friday.
Staff were also informed about the company’s bankruptcy at lunchtime today.
Customers have been told that transport hubs and depots have been closed until further notice
Tuffnells
Around 4,000 businesses are customers at Tuffnells, including Evans Cycles and Black Circles.
The delivery giant, which operated across 167 countries, also prided itself on handling large, heavy and bulky items.
Customers have been told that transport hubs and depots have been closed until further notice.
Parcel collection will be arranged over the coming days, Interpath’s Howard Smith has revealed.
The delivery giant, which operated across 167 countries, also prided itself on handling large, heavy and bulky items.
Tuffnells
Tuffnells was under the ownership of Connect Group, which was originally named WHSmith News and later rebranded to Smiths News.
The business was sold to turnaround investment specialist Broad Oak Support Services for £15million in 2020.
The delivery company was reporting annual revenue of £178million and £5.5million of pre-tax profit in the year to December 2021.
However, law firm TLT LLP filed a notice of an intention to appoint administrators on behalf of Tuffnells Parcels Express Limited through court filings submitted on Friday afternoon.