It has been announced by the administrators of City Link, the couroer firm that there will be 2,356 job losses. There was an attempt to buy the company but it failed and it ended up in the company collapsing. Many workers found out on Christmas Day that there would be substantial redundancies from the company. On New Years Eve the administrator announced that there would be job losses, saying that an offer was made for the company but it was not acceptable.
They explained that a consortium offered money up front but had undervalued the assets and so it was not enough. They were asked to reconsider but refused and so their bid was not accepted.
The most jobs are in Coventry at the head office and there will be 350 redundancies there. Hatfield, Heathrow and Warrington have also seen more than 100 job losses. 371 people have been retained by the company to deal with winding down operations and delivering remaining parcels.See also
: Job Openings
The joint administrator of City Link, Hunter Kelly, explained that the company was getting too many losses which were too many for it to be able to continue and then an attempt at sale fell through.
The union general secretary Mick Cash explained that the sudden announcement of 2,400 staff redundancies and no effort to save the company was a disgrace and a betrayal. He went on to say that the union did not believe that any attempt was made to try to save the business.
Vince Cable, the governments business secretary explained that it was sad news and that the Government has arrangements in place to help those that will be made redundant.
There are 30,000 parcels awaiting collection at depots and it is expected the firm with close around the 6th January 2015.