City Link has gone in to administration
The Parcel delivery firm City Link has gone in to administration leaving more than 2,727 jobs at risk over the festive period. City Link is owned by the investment firm headed by Jon Moulton, the veteran venture capitalist and John Lewis is amongst its largest clients. Reportedly, John Lewis has transferred all its business with the company to alternative carriers.
“John Lewis has worked with City Link during this challenging period and provided significant support to enable them to trade,” a spokesperson said.
“It is always a matter of deep regret when any of our suppliers are unable to continue with their business.”
According to reports City Link has been loss making for many years The collapse of one of the UK’s biggest parcel delivery services has left most employees shocked, as they didn’t see it coming.
According to Sky News, City Link invited called in the professional services firm EY on Christmas Eve and immediately refrained from accepting parcels from its numerous customers. EY confirmed its appointment to Sky News, saying it had put in place the ban on accepting new parcels at its Coventry head office, three other transport hubs and 53 depots across the UK.
“The company has entered administration as a result of continued substantial losses and is unable to continue accepting new parcels due to the further losses it would incur,” it said.
When businesses go into administration or liquidation they usually keep few staff to help the administrator who come on board the same will be done for City Link, number of staff would be kept to help return EY till all parcels has been delivered.
The administrators has advised all customers who used City Link on Christmas Eve for their parcels can retrieve their parcels on or after 29 December 2014.
Our Team just checked the City Link website and it still up and running… Nothing has changed yet.
We hope the employees get a good payout whilst looking for another job.
