Swindon-based logistics company Connect Group is to close Pass My Parcel and its Parcel Shop network as part of a major overhaul of the business which will see both its chief executive and its chief financial officer step down.
In a statement to investors this morning (June 13) Connect Group, the distribution company behind Tuffnells, said its performance since unveiling its interim results in May had been "extremely disappointing".
It had "reduced its expectations for full year adjusted profit before tax as a result of:
A material fall in volume and increased cost through Tuffnells peak
Increased costs in Pass My Parcel
Disappointing sales of World Cup related products in Smiths News
Delays in realising planned cost savings across the group."
For the three months to June 2, Tuffnells recorded external revenue of £43.5m, down by 12.3 per cent from £49.6m in the same period in 2017. Year to date revenue for the third quarter was £130.8m, down by 3.9 per cent from £136.2m in with the same period in 2017.
The company said that chief financial officer David Bauernfeind would be leaving with immediate effect, while chief executive Mark Cashmore will stay with the company until his replacement is appointed.
Tony Grace – who was chief financial officer at Yodel and previously held senior positions at Virgin Media and Telewest – at will join the company as interim CFO from Monday, June 18.
Pass My Parcel enabled members of the public to deliver and collect parcels via a network of 3,500 newsagents, convenience stores, and other independent outlets.