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".
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