112 lose their jobs as parcel firm goes bust
City Link confirm administration after last-ditch rescue attempt fails
MORE than 100 staff at City Link’s West Drayton transport hub have been made redundant after last-ditch efforts to rescue the parcel company failed.
Administrators announced on New Year’s Eve that 2,536 of the firm’s 2,727 employees had lost their jobs, and last week the impact on West Drayton became clear.
Of the 132 full- and part-time staff working at the firm’s Heathrow transport hub, in Stockley Close, 112 have lost their jobs.
Joint administrator, Hunter Kelly of Ernst & Young, said: “It is with regret that we have to announce substantial redundancies at City Link Limited, which ceased accepting new parcels on December 24, 2014.
“The company endured substantial losses, which ultimately became too great for it to continue as a going concern, and City Link Limited entered administration following an unsuccessful sale process.”
The parcel delivery company, which operates 53 depots and three transport hubs across the UK, entered administration on Christmas Eve.
Administrators turned down an offer from an unnamed consortium to buy the business, saying the bid ‘offered no money up front and significantly undervalued the assets to be acquired’.
Mick Cash, general secretary of trade union RMT, called the decision to reject the offer a ‘disgraceful and cynical betrayal that will wreck the lives of our members, many of whom are owed thousands of pounds,’ adding that ‘RMT does not believe that those pulling the strings had any interest in saving this business’.
Business secretary Vince Cable MP said the government had put measures in place to help the affected staff to find new jobs.
He said: “This is very sad news for the City Link workers and their families at a particularly difficult time of year.
“The government has put arrangements in place to help employees who are made redundant and we stand ready to help.
“City Link employees and selfemployed drivers who have their contracts terminated as a result of City Link’s administration will be able to access the government’s rapid response service, which draws together local partners such as Jobcentre Plus and the skills bodies to deliver support for each person affected.”