France UK jobs go as La Poste shuts Panic Link

French post office La Poste has closed its franchise UK parcels business Panic Link, with the loss of 196 hub and head office jobs. The closure of the loss-making Pounds 15m (Dollars 35.7m) turnover business follows a strategic review by consultants KPMG, who recommended the parcels company be put into receivership. La Poste bought a 51% stake in Panic Link two and a half years ago
as part of its UK expansion. But a major rethink byLa Poste became apparent when it paid Pounds 190m last November for the UK’s Parceline and Interlink businesses from Mayne Nickless of Australia. At that time, Panic Link handled the UK business of Chronopost, the document and parcel delivery arm of La Poste. The Chronopost traffic, said a spokesman in Paris, will be transferred to Parceline and Interlink. It is understood that a number of UK franchisees became sole agents for Panic Link at the behest of La Poste during its takeover in February 1999. Those franchisees are now entitled to just one month’s
commission, but are low down the list of unsecured creditors. A Chronopost spokesman said that Paris will try to find work for Panic Link franchisees within the existing Parceline and Interlink network. But that may prove difficult because only Interlink is a franchise operation.
Copyright 2001 Lloyds List.
Source: World Reporter (Trade Mark) – FT McCarthy.LLOYDS LIST, 11th June
2001