One of the UK’s biggest logistics firms, Tuffnells Parcels Express has confirmed that it’s entered administration after being hit by financial pressures impacting trading.
The Sheffield-headquartered business, nicknamed ‘The Big Green Parcel Machine’ and a specialist in handling items of irregular dimension and weight (IDW), has suspended all deliveries while the majority of its,200 dedicated employees have been made redundant.
The company was founded in 1914 when Harold Tuffnell invested £100 in a horse and cart to deliver goods. It’s had several owners over the years, including a return to private ownership in 2020 when it was acquired by Palm Bidco, expanding to 33 depots across the UK, handling logistics to over 160 destinations worldwide.
The business has been hit in recent years by the impact of Covid-19, high cost inflation and an increasingly competitive market and was seeking additional financial support but called in the administrators last Friday.
Rick Harrison and Howard Smith from Interpath Advisory were appointed joint administrators today (Monday 12 June 2023).
Rick Harrison, managing director at Interpath Advisory, said: “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 the company experiencing intense pressure on cashflow.”
Harrison added that the priority would be to support former staff with redundancy claims and minimising disruption to customers.
Howard 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.”
The announcement comes just days after rival DX Group Plc said it had reached a full and final settlement with Tuffnells over a legal dispute. In February 2023, DX said it had received a legal claim in relation to confidential competitor information reportedly being obtained by DX in the past in exchange for an offer of payment.
