UK delivery firm Tuffnells Parcels Express has entered administration with more than 2,000 workers being made redundant.
Rick Harrison and Howard Smith, managing directors at Interpath Advisory, have been appointed as joint administrators, with all deliveries currently suspended for the foreseeable future.
Harrison commented, “Tuffnells is one of the UK’s most recognizable logistics companies, providing delivery services to over 4,000 businesses across the UK under its ‘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 the company experiencing intense pressure on cashflow.
“Today’s news will be particularly devastating for Tuffnells’ 2,200 dedicated employees. 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 minimizing disruption to customers,” he said.
Smith added, “Customers are advised that all transport hubs and depots have been closed until further notice. Our team will be making contact with customers over the coming days to arrange parcel collection.”
Headquartered in Sheffield, Tuffnells has 33 depots across the UK, and specializes in handling items of irregular dimension and weight. Acquired by acquired by Palm Bidco in 2020, the business delivers both within the UK and internationally, handling logistics to over 160 destinations worldwide.
According to the administrators, Tuffnells has had to navigate numerous pressures in recent years which have impacted trading, including the impact of Covid-19, high inflation and an increasingly competitive market. Tuffnells recently sought additional financial support, but after various options were explored, the directors took the decision to seek the appointment of administrators.