Tuffnells Parcels Express, part of Swindon-based Connect Group, has offered jobs to some of the 2,000 drivers affected by the collapse on Christmas Eve of larger rival City Link.
Tuffnells, which operates from 34 depots and has a fleet of more than 930 vehicles and 800 trailers in its distinctive green livery, was bought by Connect last November for £113m.
The firm, based in Sheffield, said it expects to pick up business from the demise of City Link, which this week closed its Swindon depot with the loss of a further five jobs on top of 54 redundancies made last week. 
Some 14 back office staff are being retained on the site at Royal Wootton Bassett – which was one of the failed firm’s largest in its 51-strong network. They will help the administrators EY sell the company’s assets and wind down its operations, as well as returning parcels to customers.
Tuffnells managing director Lloyd Dunn said: “There’s a national shortage of experienced drivers and we know City Link had many excellent staff who served the company well over the years – it is not their fault things went pear-shaped.
“Many of City Link’s customers will be looking for new delivery partners, and we’ll be offering a good value alternative – but to do that we need lots more good people to add to the ones we already have.”
The firm employs more than 700 drivers.
Around 2,000 of City Link’s 2,780 staff were made redundant by the administrators on New Year’s Eve. A further 230 redundancies have been announced and are taking affect this week and next.
The controversial collapse of City Link, which incurred huge losses over recent years, was blamed on intense competition in the parcel delivery sector, changing customer and parcel recipient preferences, and difficulties in reducing its cost base.
The administrators had unsuccessfully attempted to sell the business as a going concern.
Labour and trade unions have hit out at the way the administration was handled, with most staff only finding out from media reports on Christmas Day.
Better Capital, founded by private equity veteran Jon Moulton, had bought City from pest control company Rentokil Initial in April 2013 for just £1. The firm has made a loss since 2007 – the year after Rentokil acquired it – including £26m in 2012.
Better Capital ploughed £40m into City Link but it has emerged that the investment was made in the form of a secured loan – meaning Better Capital will be paid ahead of its redundant staff. Better Capital has said it expects to get around half of its investment back.
Connect acquired Tuffnells as part of its plan to diversify away from the traditional newspaper and magazine wholesaling business that formed its core when it de-merged from Swindon-based retail giant WH Smith in 2006. The group’s businesses now include books and education and care equipment.
