Tuffnells collapses into administration

Logistics firm Tuffnells Parcels Express has collapsed into administration, it was confirmed on Monday, with the loss of around 2,000 jobs.

The Sheffield-based business, which has 33 UK depots and employs 2,200 people, appointed Interpath Advisory as administrators on Monday after running out of cash.

Its transport hubs and depots have been closed until further notice, and all deliveries suspended with immediate effect.

As a result, Interpath said that the "majority" of staff will now be made redundant.

Rick Harrison, joint administrator, said: "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."

Interpath said the company, a mixed freight specialist, had been rocked by the pandemic, high cost inflation and stiff competition.

Harrison continued: "Tuffnells is one of the UK’s most recognisable logistics companies, providing delivery services to over 4,000 businesses across the UK under it’s 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 the company experiencing intense pressure on cash flow."

The company had in recent weeks sought additional financial support before opting to call in administrators.

Tuffnells was sold by Connect Group to Palm Bidco, a special purpose vehicle, in 2020 in a £15m deal. Palm was backed by investors brought together by specialist restructuring advisory firm Broad Oak Support Services.