More than 2,000 people are to be made redundant as Tuffnells, the Sheffield-based delivery company, enters administration.
Just 128 staff members are to be kept on, the administrators said.
Tuffnells has 33 depots across the UK, handling goods across more than 160 destinations worldwide and serving more than 4,000 business customers, including Evans Cycles.
It specialised in distributing mixed freight and handling items of irregular dimension and weight and operated under the Big Green Parcel Machine brand.
The administration had been expected. Employees were reportedly told to go home on Friday as the company prepared to enter administration.
Tuffnells had been under financial pressure after being hit by the COVID-19 pandemic, rising costs and competition.
Administrators from Interpath Advisory were called in on Monday when the company failed to secure further funding.
Deliveries have been suspended and will not return, one of the administrators and a managing director at Interpath said.
“Today’s news will be particularly devastating for Tuffnells’ 2,200 dedicated employees,” Rick Harrison said.
“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.”
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Staff will be given support to make claims from the state’s redundancy payments office, Mr Harrison added.
The administrators also said they will try to minimise disruption to customers.
Customers are advised that all transport hubs and depots have been closed “until further notice”, another of the administrators, Howard Smith said.
“Our team will be making contact with customers over the coming days to arrange parcel collection.”