Shrewsbury staff devastated by City Link closure

PHE Couriers Ltd is a subcontractor for City Link and has drivers that work from the Shrewsbury depot in Henley Way, Sundorne.

A member of the management said; "This was the worst possible news we could have had on Christmas Day.

"This is going to destroy us and is going to put us at least £20,000 in debt.

"We found out via the news, not by City Link.

"It is devastating, our drivers will still need to be paid and they still have mouths to feed at home.

"They are ringing up trying to find out what is happening and we are working hard to try and find some work.

"There will be others like us because I think about three quarters of their business is subcontracted."

Employees of parcel delivery company City Link have said the Christmas Day announcement that their jobs were at risk was the worst possible news.

The delivery depot in Shrewsbury is likely to see job losses after the parcel delivery firm went into administration on Christmas Day.

PHE Couriers Ltd are a subcontractor for City Link and have drivers that work from the Shrewsbury depot in Henley Way, Sundorne.

A member of the management said; "This was the worst possible news we could have had on Christmas Day.

"This is going to destroy us and is going to put us at least £20,000 in debt.

"We found out via the news, not by City Link.

"It is devastating, our drivers will still need to be paid and they still have mouths to feed at home.

"They are ringing up trying to find out what is happening and we are working hard to try and find some work.

"There will be others like us because I think about three quarters of their business is subcontracted."

Shropshire Councillor Mal Price, who represents the Battlefield ward said: "This is really not good new at all.

"And for people to find out on Christmas day, well that must have been really hard.

"It is quite a busy operation down there and I just feel for all the staff there who had to find out the way they did."

The RMT union has branded the timing of the announcement as "disgraceful".

It has demanded urgent talks with Business Secretary Vince Cable after it said it had been told City Link was in administration on Christmas Eve, a fact neither the company or the administrators were prepared to confirm publicly until the following day.

City Link, which has 2,727 employees nationwide, called in administrators from professional services firm EY after years of "substantial losses".

The Coventry-based company, which is understood to count John Lewis among its largest clients, now expects numerous redundancies after no buyer could be found to bail it out.

The RMT said it believed there may have been more cynical motives behind the decision to delay the announcement until Christmas Day and demanded an investigation.

Mick Cash, the RMT General Secretary, said: "The delayed timing of the announcement that City Link was in administration to tea time on Christmas Day stinks to high heaven.

"Not only was it the most brutal and callous way to treat nearly 3,000 staff but RMT believes there may have been more cynical motives behind it which we want the Government to investigate.

"The disgraceful timing of the City Link announcement at the start of the festive season must not be allowed to delay and hamper efforts to rescue the jobs. That is why RMT is demanding urgent meetings with both the administrators and Vince Cable, we will tolerate no dragging of heels. "

Mr Cash has vowed that the union would do everything within its power to mobilise a political and industrial fight to save jobs.

City Link operations have been suspended at all its depots until Monday, when customers and those expecting deliveries will be able to collect their parcels.

A number of staff will be retained to help return parcels to customers and help with winding down the company, EY said.

Hunter Kelly, joint administrator to City Link, said: "City Link Limited has incurred substantial losses over several years.

"These losses reflect a combination of intense competition in the sector, changing customer and parcel recipient preferences, and difficulties for the company in reducing its cost base.

"The strain of these losses became too great and all but used up Better Capital's £40 million investment, which was made in 2013 and intended to help to turn around the company.

"Despite the best efforts to save City Link Limited, including marketing the company for sale, it could not continue to operate as a going concern and administrators were appointed."