Mon, 29 Dec 2014 | ADMINISTRATION
The owner of City Link has defended the way he has handled the company’s administration.
The parcel delivery business collapsed on Christmas Eve, with union bosses condemning the failure as an “absolute disgrace”.
Owned by investment firm Better Capital, the Coventry-based business appointed EY as administrators because it could no longer cope with “substantial losses”. Major redundancies are expected but, according to a member of staff speaking to ITV on Sunday (28 December), employees have still not been officially notified of the news.
John Moulton, the founder of Better Capital, defended the way events unfolded, saying that every possible avenue was explored to save City Link but delaying the closure until after the busy Christmas period was not an option.
Customers expecting parcels from City Link have been told to go and collect them from depots as of Monday (29 December).
Union RMT said it had been told by administrators that more than 2,000 staff will be made redundant on New Year's Eve, while the remaining staff – around 700 – will be retained in the short term to wind down the company.
A statement from EY has revealed that the administrators are gathering expressions of interesting from a number of parties wanting to buy everything from individual assets or divisions of the business through to the entire company. Previous attempts to sell the business have proven unsuccessful, however, causing administrators to declare they are "cautious about the prospects of finding a buyer".
_____________________________________________________________
Related information:
Acquisition strategy tips
View the latest businesses for sale
Offered for sale is a highly regarded firm of commercial building consultants and surveyors, dedicated to providing expert advice and guidance in order to maximise the value of clients’ building assets.
The company designs, manufactures, installs, and maintains bespoke dust control equipment across the UK. Priding itself on its extensive in-house knowledge, the company provides a full range of filters, fans, and ducting, as well as offering annual C...
This business is a true powerhouse, offering customers everything they need to achieve their desired spaces in one convenient place. Whether they’re undertaking a full-scale renovation or searching for that perfect finishing touch, the solutions offe...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.