New Year gloom for Peterborough workers as jobs axed at City Link

City Link depot in Fengate EMN-141229-155534009
City Link depot in Fengate EMN-141229-155534009
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More than 50 workers in Peterborough have been made redundant at collapsed parcel delivery company City Link despite an 11th hour bid to save the firm.

City Link, which employed 63 people at its depot in Whitehead Drove, Fengate, collapsed on Christmas Eve with staff only discovering the firm’s plight through national news channels.

But workers had an anxious wait over Christmas and the New Year holiday to discover if they still had jobs.

City Link was put into administration by its private equity owner, Jon Moulton’s Better Capital.

Now administrators from Ernst & Young have confirmed that 57 of the 63 staff in Peterborough have been issued with redundancy notices.

The remaining six have been kept on to sort any parcels that remain within the firm’s network and to help with the winding down of the company’s operations.

Nationally, 2,356 redundancies across the City Link’s UK sites have been confirmed.

Some 371 people have been retained to help the administrators wind down City Link’s operations.

A spokesman for the administrators said the delay in announcing redundancies had been due to talks with an unnamed consortium to save the City Link.

He said: “An offer was made by a consortium which offered no money up front and significantly undervalued the assets to be acquired.

“The administrators proposed an alternative structure that would be acceptable and common in these situations.

“The consortium, despite attempts to make them reconsider, declined to amend their original offer.”

Hunter Kelly, joint administrator of City Link added: “It is with regret that we have to announce substantial redundancies at City Link Limited, which ceased accepting new parcels on December 24.

“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 December 29 and December 30, 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.

“The joint administrators have written letters to all employees affected by redundancy.”

The correspondence officially confirms redundancy and offers guidance for the claims procedure for redundancy and notice pay.

Employees affected by redundancy will be offered appropriate advice and support in making claims for redundancy and notice pay.

The administrators have also provided employees with contact details for enquiries regarding redundancy and claims for redundancy.

Peterborough MP Stewart Jackson said: “I’m very sorry that these jobs have been lost and the timing is terrible with the livelihoods of so many breadwinners at stake.

“I understand that the Department of Business Innovation and Skills will be sending specialist teams to help Job Centre Plus in their endeavours to assist the workforce as quickly into new employment.

Mr Jackson said: “But of course I’m happy to take up any specific cases if constituents need my help and contact me.”

Union RMT general secretary Mick Cash said; “This is despicable and callous treatment of an entire workforce by bosses who are able to fold a company on Christmas Day, protect their own money and leave the taxpayer to pick up the redundancy bill.”

City Link was founded in 1969 and delivered 60 million items each year. It had an annual revenue of about £300 million.