More than 2,000 staff will be made redundant after Sheffield-based delivery giant Tuffnells Parcels Express fell into administration.

The firm has appointed joint administrators at Interpath Advisory after failing to secure funding in recent weeks.

The majority of Tuffnells’ 2,200 employees, working across its 33 UK depots, will be made redundant, Interpath said.

Just 128 staff have been retained.

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

There will also be about 500 contractors who are set to be affected.

Transport hubs and depots at Tuffnells, 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.

It operates in more than 160 destinations worldwide – meaning the collapse is set to cause disruption for global businesses awaiting parcels.

Consumers may also face delays for deliveries like furniture or bikes as a result of the disruption to retailers.

Tuffnells has been under pressure since it was taken into independent ownership in 2020, hit by Covid-19 pressures, rising costs and increased competition, administrators at Interpath said.

The “highly competitive nature” of the UK parcel delivery market intensified pressure on the company’s cashflow. It had been seeking additional financial support in recent weeks before deciding to appoint administrators.

Richard Harrison, the managing director at Interpath Advisory and joint administrator with Howard Smith, said: “Tuffnells is one of the UK’s most recognisable logistics companies, providing delivery services to over 4,000 businesses across the UK under its The Big Green Parcel Machine brand.

“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.

“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.”

Interpath said it will be contacting business customers in the coming days to arrange for them to collect parcels from the shutdown sites.