Assets from collapsed delivery firm City Link have been sold in a deal worth more than £1.1 million.
Administrators of the firm, which collapsed leaving almost 500 people in the West Midlands out of work, completed the sale of assets including cages, scanners and certain intellectual property to DX Group.
Employees, many of whom learnt of the company’s collapse on Christmas Day, were told of their redundancies on New Year’s Eve after a last-ditch bid to save the company failed.
Administrator at EY announced 2,356 redundancies on New Year’s Eve saying that an offer made for the company had not been acceptable.
Joint administrator Hunter Kelly said: “This transaction represents our first step in realising the value of City Link Limited’s assets. We will continue this process over the coming weeks, alongside conducting an orderly wind down of the Company’s operations.”
Petar Cvetkovic, Chief Executive of DX, commented: “It is very sad that City Link has been unable to continue as a going concern, particularly for its employees and contractors. The Administrators are now proceeding with an orderly sale of assets and we have made a limited investment to acquire certain assets. We are also doing all we can to provide opportunities for former City Link employees and contractors and to offer solutions to customers who may need a new carrier.”