- Shift Acquires Tuffnells’ Brand and Intellectual Property Assets
- Fate of Former Tuffnells Employees Remains Uncertain
- Shift’s Vision for Expanding Logistics Coverage and Creating New Jobs
Administrators have sold one of Britain’s most recognizable delivery brands, but the future of its former employees remains unknown.
A logistics technology company led by a 29-year-old entrepreneur has acquired portions of Tuffnells Parcel Express, a prominent delivery company that filed for bankruptcy this month, resulting in the loss of more than 2,000 employees.
Jacob Corlett’s Shift has reached an agreement with administrators at Interpath Advisory to acquire Tuffnells’ brand and intellectual property assets.
Shift and other companies are negotiating with Interpath to lease Tuffnells’ 33 distribution terminals nationally.
The collapse of Tuffnells into insolvency posed a threat to the survival of a business that served more than 4,000 business customers and was known for decades for its distinctive green-liveried fleet of lorries traversing the roads of Britain.
The company’s most important clients included Evans Cycles, a retailer owned by Mike Ashley’s Frasers Group.
Tuffnells, founded in 1914 by Harold Tuffnell, will continue under Shift’s ownership.
However, the destiny of the majority of its former workforce remains uncertain. And it will likely depend on whether a new owner of its depot network can salvage the majority of its client contracts.
The demise of Tuffnells was precipitated by the COVID pandemic and its aftermath, skyrocketing inflation, and intensifying competition.
London-listed Connect Group, previously WH Smith, sold the business to recovery investor Broad Oak Support Services for £15m in 2020.
Mr. Corlett, who founded Shift in 2017, has taken another step towards constructing a logistics technology behemoth with the acquisition of Tuffnells’ intellectual property assets by Shift.
Homebase and IKEA are the largest consumers in Britain.
It acquired Berlin-based Movinga in April and claims to have created “an on-demand delivery marketplace” that is technologically far more sophisticated than conventional logistics firms.
This past weekend, Mr. Corlett expressed his satisfaction at having ensured the perpetuation of the Tuffnells name.
Tuffnells delivers to over 4,000 businesses across the UK. This acquisition will substantially expand 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 AI-driven routing decisions and efficient driver management.
“We are also in discussion with relevant parties to reopen some depots and offer reemployment opportunities.”
Tuffnells’ 2021 operating profit was £2.3 million, up 24%, on sales of £178.1 million.
Shift, which is privately owned, is anticipated to pursue additional acquisitions shortly.
This weekend, the identities of the other parties interested in acquiring Tuffnells’ depots from the administrators were unknown.
Richard Harrison, the joint administrator at Interpath Advisory, stated, “We are pleased to have finalized this transaction, which secures the future of one of the United Kingdom’s oldest and most well-known courier brands and enables the buyer to create several new jobs.”
