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| Version 1 | Version 2 |
|---|---|
| City Link parcel delivery company goes into administration | City Link parcel delivery company goes into administration |
| (about 1 hour later) | |
| Parcel delivery company City Link, which employs 2,727 people, has gone into administration. | |
| The company, owned by investment firm Better Capital, called in administrators on Christmas Eve after years of "substantial losses". | The company, owned by investment firm Better Capital, called in administrators on Christmas Eve after years of "substantial losses". |
| It stopped accepting parcels from customers at its head office and transport hub in Coventry, its three other transport hubs and 53 UK depots. | It stopped accepting parcels from customers at its head office and transport hub in Coventry, its three other transport hubs and 53 UK depots. |
| Administrators warned of "substantial redundancies" over the coming days. | Administrators warned of "substantial redundancies" over the coming days. |
| This is because no buyer has been found to save the company. | This is because no buyer has been found to save the company. |
| A number of staff will be retained to help return parcels to customers and help with winding down the company, said joint administrators Ernst & Young. | |
| Operations will be suspended at all the company's depots until Monday when customers and recipients will be able to collect their parcels, which they have been urged to do as soon as possible. | |
| The firm's online parcel tracking system remains live and a help phone will be open on Saturday and then from December 29. | |
| 'Shock announcement' | 'Shock announcement' |
| The other joint administrator, Hunter Kelly, said: "City Link Limited has incurred substantial losses over several years. | |
| "These losses reflect a combination of intense competition in the sector, changing customer and parcel recipient preferences, and difficulties for the company in reducing its cost base. | "These losses reflect a combination of intense competition in the sector, changing customer and parcel recipient preferences, and difficulties for the company in reducing its cost base. |
| "The strain of these losses became too great and all but used up Better Capital's £40m investment, which was made in 2013 and intended to help to turn around the company. | "The strain of these losses became too great and all but used up Better Capital's £40m investment, which was made in 2013 and intended to help to turn around the company. |
| "Despite the best efforts to save City Link Limited, including marketing the company for sale, it could not continue to operate as a going concern and administrators were appointed. | "Despite the best efforts to save City Link Limited, including marketing the company for sale, it could not continue to operate as a going concern and administrators were appointed. |
| "We will provide support to employees relating to potential redundancies. We are now beginning the process of realising the company's assets." | "We will provide support to employees relating to potential redundancies. We are now beginning the process of realising the company's assets." |
| Mick Cash, general secretary of the RMT union, said: "This is the bitterest blow any group of workers could receive on Christmas Day and it is absolutely shocking that the company have sprung this announcement once all the Christmas deliveries have been completed. | Mick Cash, general secretary of the RMT union, said: "This is the bitterest blow any group of workers could receive on Christmas Day and it is absolutely shocking that the company have sprung this announcement once all the Christmas deliveries have been completed. |
| "RMT will do everything within its power to mobilise a political and industrial fight to save the thousands of jobs that have been put at risk as a result of this shock announcement." | "RMT will do everything within its power to mobilise a political and industrial fight to save the thousands of jobs that have been put at risk as a result of this shock announcement." |
| The RMT told its members on Christmas Eve that it understood that wages owed up to 31 December would be paid, but any further payments are not guaranteed. | |
| It described the news in a circular as a "massive body blow to all our members at City Link who have made great efforts and sacrifices to their pay and terms and conditions in order to make the company a success since its current owners took control in 2013". | |
| Founded in 1969, City Link said on its website it had annual revenues of approximately £300m, a fleet of 1,700 vehicles and delivered 60 million items across the UK and worldwide each year. |