Tuffnells, the parcel delivery firm which handles shipping for many bicycle retailers including Evans Cycles, has entered administration.
The Sheffield-based business has appointed joint administrators at Interpath Advisory after failing to secure new funding.
The majority of Tuffnells’ 2,200 employees, working across its 33 UK depots, will be made redundant, Interpath said, with just 128 staff being retained.
All its transport hubs and depots have been closed “until further notice” with Interpath saying there is “no prospect of them returning in the immediate term”.
The administrators cited a highly competitive nature in the UK parcel delivery market, coupled with “significant inflation” across the company’s fixed cost base in recent times, causing intense pressure on cashflow.
Rick Harrison, managing director at Interpath Advisory and joint administrator, said: “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.”
Tuffnells is estimated to provide services to more than 4,000 businesses under its ‘The Big Green Parcel Machine’ brand.
It is well known in the cycling industry due to its relationship with Evans Cycles, as well as a number of other retailers and brands within the trade.
In recent times, the provider has become popular with e-bike brands due to its ability to deliver products with batteries and other components that are subject to additional delivery restrictions.
Howard Smith, managing director at Interpath Advisory, added: “Customers are advised that all transport hubs and depots have been closed until further notice. Our team will be making contact with customers over the coming days to arrange parcel collection.”
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