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City Link boss faces criticism

31 / 12 / 2014
City Link boss faces criticism The founder of City Link's parent company has faced criticism over the collapse of the parcel delivery firm.

Jon Moulton apologised for the timing of the announcement that City Link had collapsed on Christmas Eve, but he stressed that it could not be delayed because it was against the law to continue trading while insolvent.

Speaking to Radio 4's Today programme, Mr Moulton explained he had lost £2 million of his own money following the collapse.

"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 added: "I'm afraid that is the result of the company failing, nothing more nothing less. We chased every possible way to save this company."

Administrators Ernst & Young have confirmed there will be job cuts and has referred the situation to the government's statutory redundancy payments scheme, but Mr Moulton has denied that the tax payers could end up paying the bill and the government could be set to benefit.

"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.

A statement from Ernst & Young said people expecting parcels should contact their local depot to collect their items.

The company added: "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."

City Link was founded in 1969 and was acquired by Better Capital for just £1 in April 2013.ADNFCR-1684-ID-801768097-ADNFCR