Tuffnells: Sheffield parcel firm collapses into administration with more than 2,000 people made redundant

The parcel giant, headquartered in Meadowhall Business Park on Carbrook Hall Road, announced today it was making up to 2,200 employees across its 33 UK depots redundant. Just 128 members of staff will remain.

Deliveries have been suspended with “no immediate prospect” of them resuming. Transport hubs and depots for the firm – which delivers large and bulky goods to more than 4,000 businesses across the UK, including retailers Wickes and Evans Cycles – will be closed until further notice.

Customers will reportedly be contacted about how to collect parcels from shut down sites. There will also be around 500 contractors who are set to be affected.

Richard Harrison, managing director at administrators Interpath Advisory, 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.

"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."

The business was sold into independent ownership in 2020 for £15m. The firm was severely affected by Covid-19 pressures, rising costs and increased competition.

Tuffnells was founded in Sheffield in 1914 and serves more than 4,000 businesses across 167 countries.