Tuffnells, one of the largest courier companies in the UK, has fallen into administration, jeopardising the jobs of nearly 2,300 employees and causing potential disruptions to the multitude of businesses relying on its services.
The Sheffield-based company, established in 1914 when Harold Tuffnell purchased a horse and cart for £100 to start delivering goods, has engaged Interpath, a professional insolvency firm, to manage its bankruptcy proceedings. This comes after the company failed to secure new ownership.
Rick Harrison, Interpath Advisory’s managing director and joint administrator, stated, “The announcement today will be especially hard for Tuffnells’ 2,200 dedicated staff. Unfortunately, with delivery operations halted and no immediate resumption anticipated, we’ve had to lay off the majority of the workforce.”
He further stressed the commitment to providing support to affected employees, assisting them in making claims to the Redundancy Payments Office and working to limit the impact on customers. He clarified that a pre-pack administration was unlikely at this stage.
He acknowledged Tuffnells as a key player in UK logistics, under the ‘The Big Green Parcel Machine’ brand, serving over 4,000 businesses. However, the tough competition in the UK parcel delivery sector and considerable inflation affecting the company’s fixed costs have led to severe cashflow constraints.
All drivers were summoned to their respective depots on Friday, and the employees were informed about the bankruptcy around noon today.
Tuffnells caters to over 4,000 commercial clients and prides itself on expertise in managing large, heavy, and oversized items. The clientele includes Evans Cycles, online tyre retailer Black Circles, and farming tool provider Spalding. The company has a presence in 167 countries.
Howard Smith, also from Interpath, advised customers that all transport hubs and depots are closed until further notice. He added that his team would be contacting customers to organise parcel collections in the following days.
Tuffnells was previously owned by Connect Group, formerly known as WHSmith News. It was sold to Broad Oak Support Services, a turnaround investment specialist, in 2020 for £15m. The company was renamed Smiths News in 2014 after acquiring Tuffnells for over £100m. The name was changed again to Connect Group in 2020.
Despite selling for a relatively modest price, Tuffnells remains a significant player in the delivery sector, boasting an annual revenue of £178m and a pre-tax profit of £5.5m in the year leading up to December 2021.
A court filing on Friday afternoon disclosed that law firm TLT LLP had submitted an intention to appoint administrators on behalf of Tuffnells Parcels Express Limited.
