More than 2,000 workers redundant as supply agency Tuffnells collapses
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ore than 2,000 workers will probably be made redundant after Sheffield-based supply big Tuffnells Parcels Express fell into administration.
The agency has appointed joint directors at Interpath Advisory after failing to safe funding in current weeks.
The majority of Tuffnells’ 2,200 staff, working throughout its 33 UK depots, will probably be made redundant, Interpath stated.
Just 128 workers have been retained.
Regrettably, with deliveries suspended and with no prospect of them resuming within the speedy time period, we now have needed to make nearly all of workers redundant
There can even be about 500 contractors who’re set to be affected.
Transport hubs and depots at Tuffnells, which delivers giant and ponderous items to greater than 4,000 companies throughout the UK, together with retailers Wickes and Evans Cycles, will probably be closed till additional discover.
It operates in additional than 160 locations worldwide – that means the collapse is ready to trigger disruption for world companies awaiting parcels.
Consumers can also face delays for deliveries like furnishings or bikes because of the disruption to retailers.
Tuffnells has been underneath strain because it was taken into unbiased possession in 2020, hit by Covid-19 pressures, rising prices and elevated competitors, directors at Interpath stated.
The “highly competitive nature” of the UK parcel supply market intensified strain on the corporate’s cashflow. It had been in search of extra monetary help in current weeks earlier than deciding to nominate directors.
Richard Harrison, the managing director at Interpath Advisory and joint administrator with Howard Smith, stated: “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.
“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.”
Interpath stated it is going to be contacting enterprise prospects within the coming days to rearrange for them to gather parcels from the shutdown websites.