city link collapses

shepherdess · Post by **shepherdess** » 25 Dec 2014, 17:21

http://news.sky.com/story/1397670/2700- ... k-collapes" onclick="window.open(this.href);return false;

arnold cheshire · Post by **arnold cheshire** » 25 Dec 2014, 18:47

http://www.bbc.co.uk/news/business-30602326" onclick="window.open(this.href);return false;

Post by **adb2aber** » 25 Dec 2014, 19:09

City Link parcel delivery company goes into administration

UK parcel delivery company City Link, which employs 2,727 people, has gone into administration.

The company, owned by investment firm Better Capital, called in administrators on Christmas Eve after years of "substantial losses".

It stopped accepting parcels from customers at its head office and transport hub in Coventry, its three other transport hubs and 53 UK depots.

Administrators warned of "substantial redundancies" over the coming days.

This is because no buyer has been found to save the company.

Operations will be suspended at all the company's depots until Monday when customers and recipients will be able to collect their parcels.

'Shock announcement'

Hunter Kelly, joint administrator to City Link with Ernst & Young, said: "City Link Limited has incurred substantial losses over several years.

"These losses reflect a combination of intense competition in the sector, changing customer and parcel recipient preferences, and difficulties for the company in reducing its cost base.

"The strain of these losses became too great and all but used up Better Capital's £40m investment, which was made in 2013 and intended to help to turn around the company.

"Despite the best efforts to save City Link Limited, including marketing the company for sale, it could not continue to operate as a going concern and administrators were appointed.

"We will provide support to employees relating to potential redundancies. We are now beginning the process of realising the company's assets."

Mick Cash, general secretary of the RMT union, said: "This is the bitterest blow any group of workers could receive on Christmas Day and it is absolutely shocking that the company have sprung this announcement once all the Christmas deliveries have been completed.

"RMT will do everything within its power to mobilise a political and industrial fight to save the thousands of jobs that have been put at risk as a result of this shock announcement."

Broxi51 · Post by **Broxi51** » 25 Dec 2014, 19:12

My ex manager at RM left to join City Link as a manager because he thought RM was going down the tubes.
He is an arsehole but I wouldn't wish this on anyone at this time of year.
Good luck to the staff.

The_Wax_Man · Post by **The_Wax_Man** » 25 Dec 2014, 19:42

City Link parcel delivery company goes into administration

http://www.bbc.co.uk/news/business-30602326" onclick="window.open(this.href);return false;

Parcel delivery company City Link, which employs 2,727 people, has gone into administration.

The company, owned by investment firm Better Capital, called in administrators on Christmas Eve after years of "substantial losses".

It stopped accepting parcels from customers at its head office and transport hub in Coventry, its three other transport hubs and 53 UK depots.

Administrators warned of "substantial redundancies" over the coming days.

This is because no buyer has been found to save the company.

A number of staff will be retained to help return parcels to customers and help with winding down the company, said joint administrators Ernst & Young.

Operations will be suspended at all the company's depots until Monday when customers and recipients will be able to collect their parcels, which they have been urged to do as soon as possible.

The firm's online parcel tracking system remains live and a help phone will be open on Saturday and then from December 29.

'Shock announcement'
The other joint administrator, Hunter Kelly, said: "City Link Limited has incurred substantial losses over several years.

"These losses reflect a combination of intense competition in the sector, changing customer and parcel recipient preferences, and difficulties for the company in reducing its cost base.

"The strain of these losses became too great and all but used up Better Capital's £40m investment, which was made in 2013 and intended to help to turn around the company.

"Despite the best efforts to save City Link Limited, including marketing the company for sale, it could not continue to operate as a going concern and administrators were appointed.

"We will provide support to employees relating to potential redundancies. We are now beginning the process of realising the company's assets."

Mick Cash
Mick Cash replaced the late Bob Crow as general secretary of the RMT in September
Mick Cash, general secretary of the RMT union, said: "This is the bitterest blow any group of workers could receive on Christmas Day and it is absolutely shocking that the company have sprung this announcement once all the Christmas deliveries have been completed.

"RMT will do everything within its power to mobilise a political and industrial fight to save the thousands of jobs that have been put at risk as a result of this shock announcement."

The RMT told its members on Christmas Eve that it understood that wages owed up to 31 December would be paid, but any further payments are not guaranteed.

It described the news in a circular as a "massive body blow to all our members at City Link who have made great efforts and sacrifices to their pay and terms and conditions in order to make the company a success since its current owners took control in 2013".

Founded in 1969, City Link said on its website it had annual revenues of approximately £300m, a fleet of 1,700 vehicles and delivered 60 million items across the UK and worldwide each year.

datasaint · Post by **datasaint** » 25 Dec 2014, 20:30

Was only recently talking to a City Link driver on my round start of this week, he had 150 drops on board.

How can the company fail when so many are self employed drivers?

arnold cheshire · Post by **arnold cheshire** » 25 Dec 2014, 21:07

norm wrote:Was only recently talking to a City Link driver on my round start of this week, he had 150 drops on board.

How can the company fail when so many are self employed drivers?

easy days work then

Post by **ihatedogs** » 25 Dec 2014, 23:15

Viewfindergeneral · Post by **Viewfindergeneral** » 25 Dec 2014, 23:40

ihatedogs wrote:As the title says. Just been on the news. Sorry, no online link.

http://www.bbc.co.uk/news/business-30602326" onclick="window.open(this.href);return false;

Post by **wacko74** » 26 Dec 2014, 06:57

norm wrote:Was only recently talking to a City Link driver on my round start of this week, he had 150 drops on board.

How can the company fail when so many are self employed drivers?

I'd like someone more business minded to explain this too.. I can't understand how TNT/Whistl can be so optimistic about the delivery market and are investing heavily into it whilst at the same time Citylink fails completely?

Post by **Lounge Lizard** » 26 Dec 2014, 10:27

wacko74 wrote:
norm wrote:Was only recently talking to a City Link driver on my round start of this week, he had 150 drops on board.

How can the company fail when so many are self employed drivers?
I'd like someone more business minded to explain this too.. I can't understand how TNT/Whistl can be so optimistic about the delivery market and are investing heavily into it whilst at the same time Citylink fails completely?

Partly because TNT/Whistl is big enough to expand into cherry picking urban areas for delivering business mail ( and their bicycles are cheaper than City Link's new vehicles ).

NWpostie · Post by **NWpostie** » 26 Dec 2014, 14:15

wacko74 wrote:
norm wrote:Was only recently talking to a City Link driver on my round start of this week, he had 150 drops on board.

How can the company fail when so many are self employed drivers?
I'd like someone more business minded to explain this too.. I can't understand how TNT/Whistl can be so optimistic about the delivery market and are investing heavily into it whilst at the same time Citylink fails completely?

As far as I am aware Citylink is a UK based company and not multinational and their business model probably differers greatly from TNT/DHL/DPD which is multinational

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