Tuffnells, the parcel delivery service, has appointed administrators from Interpath Advisory after it failed to secure more funding.
Over 2,000 workers will be axed along with around 500 contractors, with staff having been warned about the bankruptcy last Friday.
Only 128 staff will remain at the Sheffield-based company.
Delivering to more than 4,000 companies in the UK including Wickes and Evans Cycles, the group is known for transporting large, bulky and unconventional-sized packages.
Operating under the ‘Big Green Parcel Machine’ brand the group struggled post-pandemic especially as the market became more competitive, said Rick Harrison, joint administrator.
Harrison said: “Significant inflation across the company's fixed cost base in recent times, has resulted in the company experiencing intense pressure on cashflow.
“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.”
Tuffnells was acquired by Connect Group in 2014 for £113mln before being taken private by Palm Bidco in a deal worth £15mln.