Talks with potential buyer breakdown
New Year blow as 2,356 jobs go at City Link
A potential buyer had come forward but its offer fell short of the assets’ valuation, said Ernst & Young which was called in on Christmas Eve.
The job losses announced this afternoon represent the bulk of the Coventry-based company’s 2,727 employees of which 165 are based in five Scottish depots.
The administrators said a revised proposal put to the potential buyer was not acceptable and they declined to amend their original offer.
Just under 400 staff have been retained to handle parcels at City Link depots and help run down the business.
Speculation about a potential rescue deal emerged on Wednesday with Royal Mail touted as a possible buyer of some of the assets.