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Author Topic: City Link parcel delivery company goes into administration  (Read 10272 times)
tomL
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« Reply #30 on: December 29, 2014, 12:06:45 am »

Amazon have their own company/service under the name of "Amazon Logistics" who run 7 days a week and if you're on prime and you order most things before 7pm it'll be at your door the next day. Crazy, but it works apart from the occasional routing error which makes people have to wait a whopping two days!  Shocked Shocked Grin

I believe the cheaper delivery options are contracted out to a handful of the (remaining) courier and postal companies.

Note: as much as it sounds like Amazon is consuming the industry whole many other sellers on Amazon still use Royal Mail and other courier services.
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Chris from Nailsea
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« Reply #31 on: December 29, 2014, 05:03:14 pm »

From the BBC:

Quote
City Link owner defends handling of firm's administration

Jon Moulton, the founder of the company which owned collapsed UK parcels firm City Link, said its administration was handled in the best way possible.

News of the collapse was announced on Christmas Eve, but Mr Moulton said the timing could not have been avoided.

On Monday, the administrators which now run City Link, said they had begun telling the 2,727 staff that "substantial" job cuts were now likely.

There are still about 40,000 parcels at City Link depots across the country. Customers are being urged to collect parcels from depots from Monday.

Mr Moulton, founder of investment business Better Capital, told Radio 4's Today programme: "We chased every possible way to save this company."

He said that delaying the closure of City Link over Christmas had not been an option, as trading while insolvent was a criminal offence.

"We're very sorry about the failure of City Link and we're very sorry about the horrible effects that will follow for the workforce and contractors," Mr Moulton said. "I'm afraid that is the result of the company failing, nothing more nothing less."

He also defended criticism that taxpayers would end up paying for City Link staff's redundancy following administrator Ernst & Young's (EY) statement that it would refer employees to the government's statutory redundancy payments scheme.

Transport Union RMT's General Secretary Mick Cash said: "It says everything about the state of industry in Britain today that a donor to the party of government can wreck the lives of thousands of people, walk away and leave the taxpayer to pick up the redundancy costs."

But Mr Moulton said: "I don't think the taxpayer is going to end up footing much of a bill on this." He said that City Link had paid "a fortune" in taxes such as PAYE and said ultimately the government would be a net beneficiary of Better Capital's investment in the firm.

"The taxpayer has certainly made an enormous amount of money out of private equity companies and their trading and success. We are looking after money that has been given to us to invest, we are in the business of trying to make money for our investors," he added.


Picket line outside a City Link depot

Mr Moulton, a multi-millionaire, said he personally had lost ^2m on the firm's investment in City Link.

Earlier on Monday, Better Capital said in its first statement since the firm went into administration, that it had tried various options to "maximise" its investment in City Link, including an unsuccessful attempt to sell the business. "In light of continued substantial losses, City Link could not continue as a going concern," it said.

City Link, which was founded in 1969, was acquired by restructuring specialist Better Capital for just ^1 in April 2013.

Meanwhile, in a statement on Monday, Ernst & Young said it had begun telling staff to expect heavy job cuts. "While no redundancies have been made today, the joint administrators believe that the company will unfortunately have to make substantial redundancies, which will take effect on 31 December. Employees that are not immediately affected by redundancies will continue to be employed, and paid, to help return the estimated 40,000 parcels remaining in City Link's depots to customers and intended recipients, as well as assist in realising the company's assets and winding down its operations," the company said.

The firm has said that parcel depots would "remain open for a short period of time" to enable customers and intended recipients to collect their parcels. It advised customers to use City Link's online tracking system to find out which depot to go to.

Coventry-based City Link called in administrators on Christmas Eve after years of "substantial losses".

Union RMT said it had been told by administrators that more than 2,000 staff will be made redundant on New Year's Eve. Remaining staff will be retained in the short term to wind down the company, union officials said.
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William Huskisson MP was the first person to be killed by a train while crossing the tracks, in 1830.  Many more have died in the same way since then.  Don't take a chance: stop, look, listen.

"Level crossings are safe, unless they are used in an unsafe manner."  Discuss.
ChrisB
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« Reply #32 on: December 29, 2014, 05:15:22 pm »

All the company had to do was to inject enough capital for a further month. Should have been done
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Chris from Nailsea
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« Reply #33 on: December 31, 2014, 03:57:12 pm »

From the BBC:

Quote
City Link collapse: APC aims to take on axed staff

A Staffordshire delivery firm has said it will make up to 100 jobs available to workers made redundant by the collapse of rival courier City Link.

APC Overnight said it would give priority to former City Link staff in filling vacancies at its national sorting centre in Cannock.

Coventry-based City Link collapsed over Christmas. Its 2,727-strong workforce have been told to expect "substantial redundancies".

APC Overnight chief executive Karl Brown said: "This is an extremely difficult time for City Link staff members and their families. Following discussions with board members, we've made the decision to prioritise City Link staff for the job vacancies we currently have on offer."

He added further posts may also be made available at 115 other APC depots throughout the UK.
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William Huskisson MP was the first person to be killed by a train while crossing the tracks, in 1830.  Many more have died in the same way since then.  Don't take a chance: stop, look, listen.

"Level crossings are safe, unless they are used in an unsafe manner."  Discuss.
Chris from Nailsea
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« Reply #34 on: January 01, 2015, 12:34:55 am »

From the BBC:

Quote
City Link announces 2,356 job losses after rescue talks fail

The administrators of collapsed delivery firm City Link have announced 2,356 job losses after a bid to buy the company failed.

The administrators, who took over City Link on Christmas Eve, said an unnamed consortium's offer was not acceptable. The possible buyer "offered no money up front and significantly undervalued the assets to be acquired," they said.

Business Secretary Vince Cable said the government has put measures in place to help the affected staff find new jobs.

The Coventry-based company was founded in 1969 and employed 2,727 people, but suffered years of losses.

City Link was bought by Better Capital for ^1 in April 2013 but the administrators from Ernst & Young say the ^40m the investment company put into the firm was not enough to turn it around.

Just over 370 City Link staff have been kept on to deal with the parcels that remain at depots and help run down the business.

The administrators said they had proposed alternative purchase terms to the consortium "that would be acceptable and common in these situations. The consortium, despite attempts to make them reconsider, declined to amend their original offer".

Speculation about a potential rescue deal emerged earlier on Wednesday when Mr Cash disclosed that he had been told of "a credible bid to take over some or all of the City Link trading operations".

Following confirmation that the rescue had failed, Mick Cash, general secretary of the RMT union, said: "Pulling the plug on any efforts to save City Link is a disgraceful and cynical betrayal that will wreck the lives of our members, many of whom are owed thousands of pounds."

The mass redundancies would leaving a "trail of human misery", he said, adding: "Those responsible will slink away with their own resources ring fenced and leaving the taxpayer to pick up the redundancy tab. The City Link Christmas destruction is an act of industrial vandalism that shames our nation while the government looked on and offered nothing but hollow words."

The business secretary the announcement of job losses was "very sad news for the City Link workers and their families at a particularly difficult time of year".

Mr Cable said City Link's employees and self-employed drivers will be able to access a government service run by job centres and the support of skills bodies.

He added: "A Facebook page has been set-up to link-up companies holding suitable vacancies with those who have been made redundant, so if drivers can be redeployed into new jobs in this competitive buoyant market they will be."

Shadow business secretary Chuka Umunna said he was "very saddened" to hear the talks to secure a buyer had failed. He tweeted: "City Link employees will quite rightly be furious at the disgraceful way in which they have been treated."

The manner and timing of City Link's collapse have been criticised, including by two Conservative MPs. One, former minister Damian Green, said: "The whole business has been handled very badly."

On Monday, Jon Moulton, founder of Better Capital, apologised for the impact on staff but said there was no alternative but to put the loss-making business into administration.

Hunter Kelly, one of the administrators, said in a statement on Wednesday: "It is with regret that we have to announce substantial redundancies at City Link Limited, which ceased accepting new parcels on 24 December 2014. 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."
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William Huskisson MP was the first person to be killed by a train while crossing the tracks, in 1830.  Many more have died in the same way since then.  Don't take a chance: stop, look, listen.

"Level crossings are safe, unless they are used in an unsafe manner."  Discuss.
Chris from Nailsea
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« Reply #35 on: January 29, 2015, 08:41:53 pm »

From the BBC:

Quote
City Link owner Jon Moulton says overtime will be paid


Mr Moulton said in hindsight it had been a huge mistake buying City Link

City Link employees will receive overtime payments, according to the founder of the company which owns the collapsed parcel delivery firm.

Jon Moulton made the comments during an appearance before MPs who were looking into how the firm ended up in administration on Christmas Day.

His investment company, Better Capital, bought City Link in 2013 for ^1.

Mr Moulton was questioned repeatedly over the role of his firm in City Link's collapse.

City Link had been been struggling for many years before Mr Moulton's private equity company took it over. Mr Moulton said they had been unable to turn it around.

"We have lost twenty million pounds," said Mr Moulton in a joint session of the Scottish Affairs Committee and the Business, Innovation and Skills Committee.

"There was no brilliant game, property angle, nothing taken out the back door. We killed ourselves to try to save this company and we failed."

However, he had a word of reassurance for workers who feared they would lose their overtime payments.

"It's my understanding that they will receive 100% of their overtime," he said.

At the beginning of November Mr Moulton said the firm was in active discussions to sell City Link as well as pursuing refinancing plans.

On 18 December, Mr Moulton said he had been in contact with the Department for Business advising that administration was a serious possibility.

It was only on 22 December that it became clear there was no solution and that administration was unavoidable, he said.

Mr Moulton said he had hoped to put the business into administration on Boxing Day, "the least worst solution".

"We were in the horrible position, that insolvency was inevitable on December 22 but this would have had a catastrophic effect on the public with undelivered parcels."

He said that Better Capital had injected another two million pounds into the City Link on 22 December to cover payments to cover the cost of deliveries on 23 and 24 December.

He also faced criticism for the way the company changed employment terms, which resulted in many workers becoming self employed contractors.

"I don't see there was anything wrong in changing terms and making people self-employed. Some will have done better out of it, some worse. I am sure both happened," he said.

Mr Moulton said the taxpayer would have to foot an estimated ^4m bill for staff redundancy payments.

In hindsight, he said it was a huge mistake buying the loss making firm. He admitted that the decision to invest in City Link had been a mistake and that it had harmed his reputation.
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William Huskisson MP was the first person to be killed by a train while crossing the tracks, in 1830.  Many more have died in the same way since then.  Don't take a chance: stop, look, listen.

"Level crossings are safe, unless they are used in an unsafe manner."  Discuss.
Chris from Nailsea
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« Reply #36 on: October 15, 2015, 02:55:00 pm »

An update, from the BBC:

Quote
City Link former directors face trial in November

Ex-directors of failed parcel firm City Link are being prosecuted under section 194 of the Trade Union and Labour Relations (Consolidation) Act 1992.

They will be tried at Coventry Magistrates' Court on 5 and 6 November.

An Insolvency Service spokesman confirmed that "criminal proceedings have been commenced against David Smith, Robert Peto and Thomas Wright".

"We will not be commenting until the criminal proceedings have been concluded," they added.

The Insolvency Service said that the Department for Business, Innovation and Skills (BIS) was bringing the prosecution on its behalf.

Coventry-based City Link, owned by investment firm Better Capital, called in administrators on Christmas Eve after "substantial losses".

On New Year's Eve it announced 2,356 job losses after a bid to buy the company failed. A week later it announced a further 230 redundancies.

The company was founded in 1969. It was bought by Better Capital for ^1 in April 2013.
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William Huskisson MP was the first person to be killed by a train while crossing the tracks, in 1830.  Many more have died in the same way since then.  Don't take a chance: stop, look, listen.

"Level crossings are safe, unless they are used in an unsafe manner."  Discuss.
ChrisB
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« Reply #37 on: October 15, 2015, 04:11:47 pm »

What that doesn't explain is that, if making more than a proscribed number redundant together, the firm has to notify the Department well in advance, which the Directors obviously failed to do, hence this prosecution.
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bignosemac
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« Reply #38 on: October 15, 2015, 04:36:46 pm »

What that doesn't explain is that, if making more than a proscribed number redundant together, the firm has to notify the Department well in advance, which the Directors obviously failed to do, hence this prosecution.

Which the directors are accused of not doing so. Important distinction. Innocent until proven guilty, sub judice, etc...
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Former FGW/GWR regular passenger. No more. Despicable company.
trainer
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« Reply #39 on: October 15, 2015, 10:37:52 pm »

What that doesn't explain is that, if making more than a proscribed number redundant together, the firm has to notify the Department well in advance, which the Directors obviously failed to do, hence this prosecution.

I suspect that it's actually making more than a prescribed number redundant without notice which is proscribed.  Wink
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Chris from Nailsea
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« Reply #40 on: October 15, 2015, 10:59:53 pm »

Written with a red pen: "6/10 See me after the lesson."  Roll Eyes Wink Grin
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William Huskisson MP was the first person to be killed by a train while crossing the tracks, in 1830.  Many more have died in the same way since then.  Don't take a chance: stop, look, listen.

"Level crossings are safe, unless they are used in an unsafe manner."  Discuss.
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