City Link workers made redundant after consortium's bid is rejected. More than 2,300 City Link workers who discovered their employer was going bust on Christmas Day were made redundant on New Year’s Eve.
The administrators of the delivery company owned by multimillionaire Tory donor Jon Moulton made 2,356 employees redundant at 4.30pm on Wednesday. Moulton, whose Better Capital private equity firm bought City Link for £1 in 2013, said he had done everything he could to keep the company going and was very sorry that the collapse ruined Christmas and New Year for so many people. “Of course, I wish it would come on different days,” he said. “We did everything we could to make sure the announcement would be on Boxing Day, not Christmas Day.
It [would have] still been horrible, but a little less horrible.” Moulton, who donated £450,000 to the Conservatives between 2004 and 2011, said Better Capital had probably lost about £20m trying to keep City Link going. The redundancies came despite a last-minute bid to save the company. “It’s going to be a struggle. City Link announces 2,356 job losses after rescue talks fail. 31 December 2014Last updated at 15:57 ET The administrators of collapsed delivery firm City Link have announced 2,356 job losses after a bid to buy the company failed.
The administrators, who took over City Link on Christmas Eve, said an unnamed consortium's offer was not acceptable. The possible buyer "offered no money up front and significantly undervalued the assets to be acquired," they said. Business Secretary Vince Cable said the government has 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 from Ernst & Young say the £40m the investment company put into the firm was not enough to turn it around. Just over 370 City Link staff have been kept on to deal with the parcels that remain at depots and help run down the business. City Link boss defends actions over collapse as criticism grows. 29 December 2014Last updated at 12:11 ET City Link contractor: "It looks as if I've worked the whole of December for nothing" Jon Moulton, founder of City Link's parent company, has denied the firm's collapse was mishandled.
News of City Link's failure was announced on Christmas Eve, but he said the timing could not have been avoided and has apologised to staff. However, the timing and manner of the announcement has been criticised, with two Tory MP saying it was "appalling". Meanwhile, the administrators running City Link have warned of "substantial" jobs cuts among the 2,727 staff. Mr Moulton, founder of investment business Better Capital, told Radio 4's Today programme: "We chased every possible way to save this company. " City Link: Employees and sub-contractors share their views. 26 December 2014Last updated at 08:13 ET Parcel delivery firm City Link announced on Christmas Day that it was going into administration.
RMT general secretary Mick Cash said it was "shocking" to have "sprung this announcement once all the Christmas deliveries have been completed". Employees and sub-contractors working for the firm have been sharing their stories and reactions. Stefan Thorrington in Exeter, Devon I have five vans in City Link colours and five drivers who have all been working flat-out up until Christmas Eve to make sure everything was delivered. We didn't have any warning about this whatsoever - drivers even knew which routes they were going to cover on Saturday. Last night I was pondering what to do. However, I do think someone must have known what was going on.
I don't know what's going to happen now. Paul Horner, Kirkcaldy I'm a sub-contractor at a local City Link depot in Fife and have been there for three years. I found out on Christmas Day. Irfan Khan, Beckton, London. City Link: RMT demands government talks over collapse. 26 December 2014Last updated at 13:03 ET A union has demanded "urgent talks" with ministers and administrators about the collapse of the UK parcel delivery service City Link.
The jobs of more than 2,700 staff and about 1,000 contractors are at risk. The government says it is unable to intervene in the administration process, although the business secretary said he would meet the union in the New Year. The RMT union says it believes City Link is a viable business concern. There is a strong case for government intervention and possibly a rescue package, it said. City Link called in administrators Ernst & Young (E&Y) on 24 December, but an announcement was not made to the media until Christmas Day. Some City Link employees said they only found out about the move when they were at home and saw it on the news. 'Dreadful timing' Founded in 1969, City Link was acquired by restructuring specialist Better Capital in April 2013.
Better Capital says it cannot respond while the stock market is closed.