Shift snaps up Tuffnells as DX acquires 15 sites

By Carol Millett and Chris Tindall

The plight of parcels firm Tuffnells has taken another twist after techbased firm Shift bought it out of administration, with DX striking a separate deal three days later to buy 15 of its former sites.

Shift, which offers on-demand delivery services using independent drivers, is led by 29-year-old founder and entrepreneur Jacob Corlett, who is looking at reopening some of Tuffnells’ 33 depots and employing some of its former staff.

Based in London, with clients including IKEA and Homebase, Shift acquired Tuffnells via an asset purchase of its IP, brand and selected assets for an undisclosed amount.

The company provides on-demand delivery services via smart algorithms that filter through the pre-existing routes of registered independent truck and van drivers and fleets of vehicles, locating drivers best suited to take on the job. Corlett said: “We are currently in dialogue with relevant parties to enable us to reopen some depots and provide re-employment opportunities.”

The purchase follows Tuffnells being placed into administration on 12 June with the loss of more than 2,000 jobs, after being hit by the impact of Covid, spiralling inflation and a fiercely competitive market.

An Interpath Advisory spokeswoman told MT that Shift has not bought the whole business out of administration, adding that “the administrators continue to explore options for the remaining assets, including, for example, the leases for the depots.”

News later broke that DX had struck a deal for 15 UK sites previously operated by Tuffnells.

DX said it had signed an agreement with Interpath Advisory for an initial licence to occupy 13 former Tuffnells sites and purchase the freehold of another site for £1m. The initial licences are a precursor to entering into direct lease agreements. DX added that it had also agreed terms directly with a landlord for a long lease over a fifteenth site.

DX has hired over 250 former Tuffnells employees since the administrator was appointed. It has also engaged with Tuffnells’ clients to provide continuity in deliveries and, so far, has taken on over 550 customers.

Paul Ibbetson, DX Group chief executive, said: “This exciting development gives us significant additional capacity and will enable us to accelerate growth while also driving further operational efficiencies and maintaining our high service levels.”

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