Tuffnells falls into administration after failing to secure funds
Mon, 12 Jun 2023 | ADMINISTRATION
Tuffnells Parcels Express has fallen into administration and appointed joint administrators at Interpath Advisory after failing to secure funding in the past couple of weeks. The delivery giant came under pressure in recent years due to increasing costs, the impact from COVID-19 and the “highly competitive nature” of the UK parcel delivery market.
Richard Harrison, the managing director at Interpath Advisory and joint administrator with Howard Smith, said: “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.”
Tuffnells is one of the biggest parcel delivery firms in the UK, with 33 depots, handling goods being sent to and from over 160 worldwide destinations and with more than 4,000 business customers. The firm specialises in distributing mixed freight and handling packages with irregular dimensions.
500 contractors are also set to be affected by the collapse which will see Tuffnells' transport hubs and depots closed until further notice. The news could also cause disruption for global businesses awaiting parcels as well as consumers from Tuffnells' retail clients, such as Wickes and Evans Cycles, who will be waiting on deliveries for large items such as furniture or bikes.
“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,” Harrison said.
In the company's most recent results, for the year ending December 31 2021, it reported turnover of £178.1 million and pre-tax profits of £5.4 million, compared to £212.4 million in revenue and £6 million in pre-tax profits for the 16 months to December 31 2020.
At the time, the company's non-current assets were valued at £13.1 million and current assets at £31.7 million, while net assets amounted to £15.9 million.
Read more about M&A within the logistics industry.
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