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Bid To Buy Coventry-based City Link Collapses
The administrators of Coventry based delivery firm City Link have announced 2,356 job losses after a bid to buy the company failed.
Many of the company's staff found out about its collapse on Christmas Day and had been warned to expect "substantial redundancies''.
The administrators said 371 people have been retained to deal with remaining parcels and to assist in realising the Company's assets and winding down its operations.
The administrators have released the following statement to Heart: "An offer was made by a consortium which offered no money up front and significantly undervalued the assets to be acquired. The Administrators proposed an alternative structure that would be acceptable and common in these situations. The consortium, despite attempts to make them reconsider, declined to amend their original offer.
"The Joint Administrators of City Link Limited have announced 2,356 redundancies across the Company’s UK sites.
"371 people have been retained by City Link Limited to deal with the parcels that remain within the Company’s network, and to assist the Joint Administrators in realising the Company’s assets and winding down its operations.
"Hunter Kelly, Joint Administrator of City Link Limited, comments: “It is with regret that we have to announce substantial redundancies at City Link Limited, which ceased accepting new parcels on 24 December 2014. The Company endured substantial losses, which ultimately became too great for it to continue as a going concern, and City Link Limited entered administration following an unsuccessful sale process.
“At meetings across City Link Limited’s UK sites on Monday 29 December 2014 and Tuesday 30 December 2014, employees were informed that there would be substantial redundancies as no new business was being taken on. Many of these employees were sent home, and informed that they would shortly receive formal correspondence to confirm their work status.”
"The Joint Administrators have written letters to all employees affected by redundancy. The correspondence officially confirms redundancy and offers guidance for the claims procedure for redundancy and notice pay.
"Employees affected by redundancy will be offered appropriate advice and support in making claims for redundancy and notice pay. The Administrators have also provided employees with contact details for enquiries regarding redundancy and claims for redundancy."
The company's main depot in Coventry will see the biggest number of redundancies, with 279 going there. 97 will go elsewhere in the West Midlands.
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