UK's Tuffnells Parcels Express collapses into bankruptcy leading to over 2,000 job losses | Mint
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Business News/ Companies / UK's Tuffnells Parcels Express collapses into bankruptcy leading to over 2,000 job losses
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UK's Tuffnells Parcels Express collapses into bankruptcy leading to over 2,000 job losses

Interpath Advisory, the administrators brought in to salvage parts of Tuffnells, added in a statement that the company had failed to secure new funding.

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British delivery company Tuffnells Parcels Express has collapsed into bankruptcy due to fierce competition and soaring costs, sparking more than 2,000 job losses, administrators said Monday.

Interpath Advisory, the administrators brought in to salvage parts of Tuffnells, added in a statement that the company had failed to secure new funding.

Privately-owned Tuffnells, which specialises in large and bulky goods, is based in the northern English city of Sheffield and delivers across Britain and worldwide.

"In recent weeks, the financial position of the business was such that the company needed to seek additional financial support," Interpath said.

"After a number of options were explored, the directors took the difficult decision to seek the appointment of administrators."

Interpath has made most of the group's 2,200 staff redundant, although it is retaining 128 workers to help wind down the business and sell off assets on behalf of creditors.

"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," said joint administrator Rick Harrison.

"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."

The company, which has 33 delivery depots dotted across Britain, also suffered badly on fallout from the coronavirus pandemic. All sites and depots are now closed until further notice.

 

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Published: 12 Jun 2023, 08:58 PM IST
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