Almost 300 staff at Menzies Parcels are facing redundancy as parent company Menzies Distribution prepares to close down the loss-making business next month.

Menzies Parcels employs around 270 staff and provides courier services to the Scottish Highlands, Islands, Grampians and Argyll. It operates 15 depots throughout Scotland and handles around 8,000 parcel deliveries and 800 parcel collections a day.

Staff at the business have been informed by management this week that the business is shutting down next month.

In a letter to staff the company stated: “The business has been incurring significant losses over the last two years and, having exhausted all other options, has come to the disappointing conclusion that it is no longer sustainable in its current form.

“Therefore, working with our employees and customers, we regret that the last day of business for Parcels Scotland will be 29 February 2024.”

Menzies Parcels has been struggling for some time, after losing a major client in May 2021. In its latest annual results to 31 December 2022, the company reported spiralling losses of - £3,221,000 (2021: - £788,000). Revenue also fell, from £22.6m to £19.6m in the period.

The news comes as parent company Menzies Distribution continues its strategy to focus on its profitable businesses. Last month Menzies Distribution announced it was pulling out of operations on Scotland’s Northen Isles which saw Streamline Shipping Group take over its transport and warehouse operations in Shetland and Orkney.

In July last year Polish parcel delivery firm and locker provider InPost acquired a 30% stake in Menzies Distribution Group, with the option to take full ownership at a later stage in deal worth just under £50m.

In its latest results to 31 December 2022 Menzies Distribution saw revenue fall to £915.5m (2021: £943.6m), a drop of £28.1m, while pre-tax profit fell by £8.9m to £3.7m in the period.

A Unite spokesperson told MT: “Unite is actively engaging with our members across Scotland affected by Menzies Parcels’ decision to make workers redundant.

”We will do all we can to support our members in this very difficult situation. This includes engaging with the company to explore how workers can find suitable alternative employment within the wider Menzies Group in order to minimise the impact of job losses.”

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