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City Link announces redundancies as it enters administration
Date: 05 January 2015 | Author: Daniel Puddicombe
Parcel courier City Link announced 2356 redundancies on New Year's Eve (31 December 2014) after the company went into administration on Christmas Day.
Joint administrators Ernst & Young and Hunter Kelly are currently operating the firm to wind down its operations.
The administrators said 371 employees have been retained to deal with the parcels that remain with the company.
All employees affected by the firm's redundancies have received letters informing them of the news and offering advice, the administrators said.
The company's Coventry depot is the worst affected location with 404 employees losing their jobs.
"It is with regret that we have to announce substantial redundancies at City Link Limited, which ceased accepting new parcels on 24 December 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," said Hunter Kelly, joint administrator of City Link.
"At meetings across City Link Limited's UK sites on Monday 29 December 2014 and Tuesday 30 December 2014, employees were informed that there would be substantial redundancies as no new business was being taken on. Many of these employees were sent home, and informed that they would shortly receive formal correspondence to confirm their work status," said Hunter Kelly.
