Smiths News warned by pension regulator over Tuffnells Express

(Sharecast News) - Smiths News has been warned by Britain's pensions regulator that it may face a financial contribution to the underfunded pension scheme of collapsed firm Tuffnells Parcels Express. Smiths News - the UK's largest wholesaler of newspapers and magazines - owned Tuffnells for nearly six years to May 2020. The company said on Monday that the regulator had advised it and other parties connected to the courier could face a total liability of around £3.5m.

Tuffnells went into administration in June 2023, leaving its pension scheme with a large deficit.

"The board maintains the view that Smiths News acted reasonably throughout its time as parent of Tuffnells and that it was an overall net contributor of funding to Tuffnells during its period of ownership," the company said in a statement.

The regulator will review submissions from Smiths News and other connected parties before deciding if financial support needs to be put up.

Reporting by Frank Prenesti for Sharecast.com