More City Link staff laid off, as collapsed firm’s 51 depots close

A further 230 City Link workers are being laid off over the next week as administrators permanently close the parcel carrier’s 51 depots across the UK. The additional redundancies announced yesterday will see workers who were kept on to help wind down operations and distribute remaining parcels joining their 2,356 colleagues, who were laid off on New Year’s Eve.

Unions have called for a “forensic investigation” into City Link’s collapse.

City Link went into administration on Christmas Eve as private equity owners Better Capital called time on the loss-making Coventry-based company.

Administrators Ernst & Young said yesterday that 141 people are being retained at City Link to help with the final process of closing the company’s network of 51 depots. The depots are expected to close by 15th January.

Any parcels remaining in the system that have not been collected by customers — around 20,000 parcels at present — will be taken to the company’s Coventry base, from where they can either be collected, or will be returned to customers via an alternative carrier.

Hunter Kelly, the joint administrator of City Link, said: “It is with regret that we announce further redundancies at City Link Limited, which will take effect over the coming days as the Company’s remaining UK depot operations close. Having returned a large volume of parcels to City Link Limited’s customers and recipients over recent days, it is no longer viable to continue operating these depots and a phased plan to close them has begun.”

Ernst & Young said the latest round of redundancies would see staff paid in full for their work in December and January, with December’s overtime to be paid out on 9th January.

“Human misery”

The Rail, Maritime and Transport (RMT) union said yesterday hit out at the “tide of human misery unleashed by the collapse of the company”.

“The fight for justice for the City Link workforce goes on and RMT continues to press for a full and forensic investigation into events leading to the collapse of the company,” said RMT general secretary Mick Cash.

“With the administrators now conducting a fire sale of the City Link assets it is simply outrageous that the bandit capitalists from Better Capital, who drove the company over the cliff, have ring fenced their investment as secured loans and will get first call on any cash raised while our members will be forced to wait months and can‎ only expect a pittance.”

Some of City Link’s assets — mainly equipment and technology — are being bought by rival carrier DX Group, which has said it is attempting to find opportunities for employees and contractors out of a job after the company’s collapse.