Latest News: Parcel delivery company City Link, which employs 2,727 people, has gone into administration. The Coventry-based company, owned by investment firm Better Capital, called in administrators on Christmas Eve after "substantial losses". RMT union general secretary Mick Cash told the BBC: "The way it's happened... that on Christmas Day they've done this to our members is disgraceful." Administrators warned of "substantial redundancies" over the coming days. This is because no buyer has been found to save the company. A number of staff will be retained to help return parcels to customers and help with winding down the company, said joint administrators Ernst & Young. The company has stopped accepting parcels from customers at its head office and transport hub in Coventry, its three other transport hubs and 53 UK depots. Operations will be suspended at all the company's depots until Monday when customers and recipients will be able to collect their parcels, which they have been urged to do as soon as possible. The firm's online parcel tracking system remains live and a help phone will be open on Saturday and then from December 29. Shock announcement The other joint administrator, Hunter Kelly, said: "City Link Limited has incurred substantial losses over several years. "These losses reflect a combination of intense competition in the sector, changing customer and parcel recipient preferences, and difficulties for the company in reducing its cost base. "The strain of these losses became too great and all but used up Better Capital's £40m investment, which was made in 2013 and intended to help to turn around the company. . Read more => bbc.co.uk/news/business-30602326 14-12-26
Posted on: Thu, 25 Dec 2014 22:00:07 +0000
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