The parent company, Menzies Distribution, reported a substantial £28.1 million drop in revenue, leading to a shift from an £11.1m profit to a £1.3m loss in its latest financial accounts. Menzies Parcels, responsible for courier services in the region with 15 depots across Scotland, saw its losses escalate from £738,000 to £3.2m over the same period.

The dire financial situation prompted Menzies Parcels to announce the cessation of operations in a letter to its staff, attributing the decision to “significant losses” sustained over the past two years. The company expressed disappointment at its current unsustainable state, and its last day of business is set for 29 February, the BBC reports.

Menzies Distribution, a major logistics firm with 5,000 employees, had earlier revealed a 30% stake acquisition by the Polish-based InPost for £49.3m in July. The deal included an option for InPost to acquire the remaining 70% within three years. Previously part of John Menzies, a Scottish company dating back to 1833, Menzies Distribution underwent a separation from John Menzies plc in 2018, facilitated by private equity investor Endless LLP.

This closure follows Menzies Distribution’s withdrawal from operations in Scotland’s northern isles, with Streamline Shipping Group taking over transport and warehouse operations in Shetland and Orkney. Trade union Unite is actively engaging with affected members across Scotland in light of Menzies Parcels’ decision to make workers redundant.