Logistics specialist Tuffnells has been placed into administration. Rick Harrison and Howard Smith from Interpath Advisory were appointed joint administrators to Tuffnells Parcels Express Limited on 12 June 2023.
Headquartered in Sheffield and with 33 depots across the UK, Tuffnells is a leading distributor of mixed freight, and is a specialist in handling items of irregular dimension and weight (IDW). The privately-owned business delivers both within the UK and internationally, handling the logistics to over 160 destinations worldwide.
The Company returned to private ownership in 2020 when it was acquired by Palm Bidco Limited. Since then, the Company has had to navigate a number of pressures which have impacted trading, including the impact of COVID-19, high cost inflation and an increasingly competitive market. In recent weeks, the financial position of the business was such that the Company needed to seek additional financial support. After a number of options were explored, the directors took the difficult decision to seek the appointment of administrators.
Rick Harrison, managing director at Interpath Advisory and joint administrator, 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.”
Rick Harrison continued: “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 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.”