Business

City Link: Further redundancies as depots close down

City Link van outside depot Image copyright AFP

The administrators of collapsed parcel delivery company City Link have announced a further 230 redundancies at the firm, taking the total to 2,586.

EY, which took over the running of City Link on Christmas Eve, said the cuts would take effect between 7 and 15 January.

The move comes as EY closes depots, with 51 due to be permanently closed by 15 January.

"It is no longer viable to continue operating these depots," said EY.

Hunter Kelly, joint administrator of City Link, said: "It is with regret that we announce further redundancies at City Link,"

However, EY said a total of 141 staff would be retained at City Link's Coventry head office and transport hub, as well as a number of its other sites to help with the winding down process.

EY said City Link still had about 20,000 parcels in its network, which would be sent to its Coventry hub to be collected by customers or returned via an alternative parcel carrier.

Offer rejected

City Link's administrators announced 2,356 job losses on New Year's Eve after rejecting an unnamed consortium's last minute offer to save the company.

The possible buyer "offered no money up front and significantly undervalued the assets to be acquired," the administrators said.

Business Secretary Vince Cable said the government had put measures in place to help the affected staff find new jobs.

The Coventry-based company was founded in 1969 and employed 2,727 people, but suffered years of losses.

City Link was bought by Better Capital for £1 in April 2013 but the administrators said the £40m the investment company put into the firm was not enough to turn it around.

Last week Jon Moulton, founder of Better Capital, denied the firm's collapse had been mishandled.

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