More than 2,000 staff will be made redundant all over the UK after delivery giant Tuffnells Parcels Express fell into administration.
Just 128 staff out of a total of 2,200 have been retained and all its transport hubs and depots have been closed, according to joint administrators at Interpath Advisory. The majority of Tuffnells' 2,200 employees will be made redundant, Interpath said. About 500 contractors will also be affected by the closures.
The company has 33 depots throughout the UK including one on Abbotsford Road, Felling, Gateshead.
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Founded in Sheffield in 1914, Tuffnells provided delivery services to more than 4,000 businesses across the UK under its 'The Big Green Parcel Machine' brand, including retailers Wickes and Evans Cycles. It also operated in more than 160 destinations worldwide - meaning the collapse is set to cause disruption for global businesses awaiting parcels. Consumers may also face delays for deliveries like furniture or bikes as a result of the disruption to retailers.
Councillor Martin Gannon, Leader of Gateshead Council, urged workers affected by the closure of the Felling depot to make use of help available from the council. “This is devastating news for all Tuffnells employees in Gateshead and across the country," he said. "We will support them as much as possible in the weeks and months ahead. The Department of Work and Pensions has a rapid response team to support affected employees and Gateshead Council's Working Gateshead teams can offer a wide range of practical support to residents around employment support including job search help, assistance with application forms, CV preparation, interview skills and self-employment advice. "Anyone affected at Tuffnells can contact the team via Working Gateshead - Gateshead Council.”
The firm appointed administrators after failing to secure funding in recent weeks. Rick Harrison, joint administrator, said he appreciated the news would be "devastating" for employees and said his first priority would be to support all those affected and helping them to make claims to the Redundancy Payments Office.
"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," he said. "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."
Joint administrator Howard Smith said customers would be aware all the firm's transport hubs and depots were shut. "Our team will be making contact with customers over the coming days to arrange parcel collection," he added.
Tuffnells has been under pressure since it was taken into independent ownership in 2020, hit by Covid-19 pressures, rising costs and increased competition, administrators at Interpath said.
The number of jobs lost is similar to when parcel delivery company City Link went into administration on Christmas Day 2014. The Coventry-based company, which was owned by investment firm Better Capital, called in administrators on Christmas Eve, leading to 2,727 people losing their jobs with a further 1,000 self-emplyed drivers also affected.
What happens if you are waiting for a parcel from Tuffnells?
Interpath said it will be contacting business customers in the coming days to arrange collection of parcels from the shut down sites.
Are you affected by the closure of Tuffnells? Join in the conversation below
Usually, consumers join other creditors in the queue to get their cash out of a collapsed business. It can either give the credit back in the form of a product or a refund or you might get your cash back from the administrators, although usually not in full. However, the general public is usually fairly low on the priority list of creditors so, there are no guarantees you will get your money back at all.
However, in the case of Tuffnells, consumers are unlikely to lose any money because the delivery company mainly couriered items between businesses. However, you may be affected by delays in the arrival of products you’ve bought as some deliveries are likely to be stuck in depots or warehouses. However, its administrator Interpath has said it will be contacting Tuffnells customers in the coming days to allow them to pick up any packages that are stuck in transit.
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