Regional job loss total at City Link is revised higher

More than 2,350 redundancies at City Link were announced in New Year's Eve.

More than 2,350 redundancies at City Link were announced in New Year's Eve. - Credit: PA

The number of job losses in East Anglia at collapsed parcels firm City Link was slightly bigger than first indicated, according to new figures from its administrators.

The joint administrators from Ernst & Young (EY) initially said on New Year’s Eve that 33 people had made redundant at the City Link depot in Chelmsford and a further 38 at the firm’s Norwich depot.

However, revised figures from EY show that a total of 38 jobs were lost in Chelmsford and 39 in Norwich.

Redundancies among City Link’s central services staff also include one person based in Newmarket, the new figures revealed.

EY announced 2,356 job losses late on New Year’s Eve after talks with a potential buyer failed to produce an acceptable offer.

The firm said a proposal had been received from a consortium but it had “offered no money up front and significantly undervalued the assets to be acquired”.

“The administrators proposed an alternative structure that would be acceptable and common in these situations,” EY added. “The consortium, despite attempts to make them reconsider, declined to amend their original offer.”

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The administrators say they have written letters to all employees affected by redundancy, with the correspondence officially confirming redundancy and offering guidance for the claims procedure for redundancy and notice pay.

“Employees affected by redundancy will be offered appropriate advice and support in making claims for redundancy and notice pay,” EY added. “The administrators have also provided employees with contact details for enquiries regarding redundancy and claims for redundancy.”