EY, the administrators of City Link Ltd, has announced a further 230 redundancies at the failed distribution and logistics company which will see its remaining depot operations close in the next eight days and the company will retain less than 150 of its original staff count of over 2,700 employees
All the 51 City Link depots which have stayed open will be permanently closed by 15 January 2015, EY said.
A total of 141 people will be retained at City Link’s Coventry head office and transport hub, as well as across a number of other sites, to help with realising the company’s assets and winding down its operations, as well as returning parcels to customers.
Hunter Kelly, EY partner and joint administrator, said: ‘It is with regret that we announce further redundancies at City Link Ltd, which will take effect over the coming days as the company’s remaining UK depot operations close. Having returned a large volume of parcels to City Link Ltd’s customers and recipients over recent days, it is no longer viable to continue operating these depots and a phased plan to close them has begun.’
EY says around 20,000 parcels still remain in the company’s network and will be sent to its Coventry hub for collection by customers, or will be returned to senders through an alternative parcel carrier.
Hunter Kelly, Charles King and Tom Lukic of EY’s restructuring team were appointed joint administrators of City Link on 24 December 2014.
On 31 December 2014, they announced an initial 2,356 redundancies across the company’s UK sites.
On 6 January 2014, the joint administrators reached an agreement with DX (Group), a leading AIM-quoted, independent parcels, mail and logistics network operator, for the sale of certain City Link Ltd assets (cages, scanners and certain intellectual property) for a total cash consideration of £1.125m.
