Connect Group PLC, the parent company of Tuffnells, has announced plans to close Pass My Parcel, its click and collect distribution arm.

Despite recent growth from new customers and the introduction of returns services, the business has continued to incur substantial losses. The Group is working closely with customers to manage an orderly closure over the coming months.

Explaining the decision to close, Stuart Godman, Connect Group’s Commercial Director said, ‘It’s hugely disappointing when a new venture doesn’t succeed, but the level of losses is unsustainable, and to continue would potentially compromise investment in our core Tuffnells and Smiths News businesses.’

Launched in 2014, Pass My Parcel’s operation was founded on Connect Group’s newspaper and magazine distribution network and later expanded to achieve national coverage with Tuffnells. The business delivered parcels to 3000 local retailers across the UK with clients included Amazon, ASOS, H&M and Disney.

Stuart Godman outlined the next steps of the closure process. ‘We are in discussion with our key clients to ensure operations are wound down in a professional and orderly fashion. It’s a complex task and we’ll be contacting all our partners very shortly with details of our plans; in the meantime we will continue to service Pass My Parcel deliveries and returns as usual.’