Logistics group snaps up Tuffnells brand after 2,000 jobs lost
A logistics technology business has bought parts of Tuffnells Parcel Express, the Sheffield-headquartered delivery company which collapsed this month with the loss of more than 2,000 jobs.
Shift, which was founded by 29-year-old entrepreneur Jacob Corlett, has struck a deal with administrators at Interpath Advisory to buy Tuffnells’ brand and intellectual property assets.
Tuffnells had suffered from a number of pressures which hit trading, including the impact of COVID-19, high cost inflation and an increasingly competitive market.
In recent weeks, the financial position of the business meant the company needed to seek additional financial support.
Shift’s purchase of the Tuffnells brand ensures the survival of a corporate name dating back to 1914.
However, the fate of the majority of the company’s former workforce is likely to be dependent upon whether a new owner of its depot network can salvage the bulk of its client contracts.
For the year ending 31 December 2021, Tuffnells generated revenue of £178.1m, with an operating profit of £2.3m, 24% higher than the previous year.
Shift was founded by Corlett in 2017 and its biggest clients in Britain include Homebase and IKEA. In April, it bought Berlin-based Movinga.
Corlett said: “We are delighted to announce today that we have acquired Tuffnells out of administration and we are in the process of incorporating the business into our tech-based logistics platform.
“Tuffnells is one of the UK’s most recognisable logistics companies, which provides delivery services to over 4,000 businesses across the UK and this acquisition will significantly increase our logistics coverage across the country.
“The acquisition supports our vision for Shift’s tech-driven logistics platform to disrupt both consumer and business logistics, through cutting edge AI driven routing decisions and driver management efficiency.
“We are also currently in dialogue with relevant parties to enable us to reopen some depots and provide re-employment opportunities.”
Richard Harrison, managing director at Interpath Advisory and joint administrator, added: “We are pleased to have concluded this transaction which secures the future of one of the UK’s longest standing and well-recognised courier brands, as well helping to facilitate an opportunity for the purchaser to generate a number of jobs.
“I would like to take this opportunity to thank all the employees and other stakeholders who have supported us throughout the administration process to date.”
