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Mr Angry · 26-12-2014, 18:46

A bit of an update from the Guardian.

"Job losses from the collapse of City Link could rise to more than 4,000 after it emerged that the parcel delivery firm partly relied on a 1,000-strong army of self-employed van drivers and agency workers."

"RMT’s general secretary, Mick Cash, called for an official investigation into both the timing of the appointment of administrators and allegations that City Link may have been restructured prior to its collapse, moving “valuable property assets out into a separate company”. The union says the holiday period could hinder a rescue plan."

"Moulton dismissed the RMT’s claims, telling the Guardian: “If this is an asset strip, it is an extremely poor one because we will have lost a lot of money.” Better Capital has already written down its £40m investment in City Link to £20m."

"Last month there was little sign of City Link’s mounting financial problems, with its website saying it had “got all its plans in place to deliver an even more successful peak to last year’s winning performance”. Liam Tucker, its operations director, who joined in September, said: “City Link had one of its most successful peak periods in 2013 and we are looking forward to an even busier and more successful one in 2014.”

"Clearly something does not add up when we consider the phenomenal growth of ecommerce and the demand on UK supply chain, yet an established distributor has gone out of business,” said Patrick Gallagher, chief executive of rival carrier CitySprint."

This could get very interesting.

26-12-2014, 18:46	#40
Mr Angry Inactive Join Date: Jan 2006 Location: Belfast Posts: 4,785	Re: City Link goes bust A bit of an update from the Guardian. "Job losses from the collapse of City Link could rise to more than 4,000 after it emerged that the parcel delivery firm partly relied on a 1,000-strong army of self-employed van drivers and agency workers." "RMT’s general secretary, Mick Cash, called for an official investigation into both the timing of the appointment of administrators and allegations that City Link may have been restructured prior to its collapse, moving “valuable property assets out into a separate company”. The union says the holiday period could hinder a rescue plan." "Moulton dismissed the RMT’s claims, telling the Guardian: “If this is an asset strip, it is an extremely poor one because we will have lost a lot of money.” Better Capital has already written down its £40m investment in City Link to £20m." "Last month there was little sign of City Link’s mounting financial problems, with its website saying it had “got all its plans in place to deliver an even more successful peak to last year’s winning performance”. Liam Tucker, its operations director, who joined in September, said: “City Link had one of its most successful peak periods in 2013 and we are looking forward to an even busier and more successful one in 2014.” "Clearly something does not add up when we consider the phenomenal growth of ecommerce and the demand on UK supply chain, yet an established distributor has gone out of business,” said Patrick Gallagher, chief executive of rival carrier CitySprint." This could get very interesting.