This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-30646076
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| City Link announces 2,356 job losses after rescue talks fail | City Link announces 2,356 job losses after rescue talks fail |
| (35 minutes later) | |
| The administrators of collapsed delivery firm City Link have announced 2,356 job losses after a bid to buy the company failed. | 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 after it collapsed on Christmas Eve, said an unnamed consortium's offer was not acceptable. | The administrators, who took over City Link after it collapsed 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. | The possible buyer "offered no money up front and significantly undervalued the assets to be acquired," they said. |
| Coventry-based City Link employed 2,727 people and suffered years of losses. | Coventry-based City Link employed 2,727 people and suffered years of losses. |
| The administrators, from Ernst & Young, said they had proposed an alternative structure to the consortium "that would be acceptable and common in these situations. The consortium, despite attempts to make them reconsider, declined to amend their original offer". | The administrators, from Ernst & Young, said they had proposed an alternative structure to the consortium "that would be acceptable and common in these situations. The consortium, despite attempts to make them reconsider, declined to amend their original offer". |
| 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. | |
| Speculation about a potential rescue deal emerged on Wednesday. | |
| Mick Cash, general secretary of the RMT union, disclosed that he had been told of "a credible bid to take over some or all of the City Link trading operations". | |
| 'No alternative' | |
| The manner and timing of City Link's collapse have been criticised, including by two Conservative MPs. | |
| One, former minister Damian Green, said: "The whole business has been handled very badly." | |
| On Monday, Jon Moulton, founder of Better Capital, the investment firm which owned City Link, apologised for the impact on staff but said there was no alternative but to put the loss-making business into administration. | |
| Hunter Kelly, one of the administrators, said in a statement: "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. | |
| "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," he said. | |
| City Link was founded in 1969, and was bought by Better Capital for just £1 in April 2013, |