The collapse of City Link has taken a major toll on the West Midlands with almost 500 people losing their job on New Year’s Eve.
A total of 491 job lossses have been confirmed in the region, many of whom learnt of the company’s collapse on Christmas Day, now face a miserable New Year after a last-ditch bid to save the company failed.
While the majority were in the Coventry headquarters, a total of 141 other staff from this region lost their jobs out of a total of nearly 2,400 across the UK.
Administrators at EY confirmed the job losses after deeming an offer made for the company had not been acceptable.
The RMT union said the failure to secure jobs at City Link, which went into administration on Christmas Eve, was “a disgraceful and cynical betrayal”.
General secretary Mick Cash said: “The City Link Christmas destruction is an act of industrial vandalism that shames our nation while the Government looked on and offered nothing but hollow words.”
In the West Midlands, there were 58 jobs axed in Birmingham, 350 in Coventry, 50 in West Bromwich and 33 in Stafford.
The Government has encouraged newly unemployed workers to go on Facebook to find job vacancies.
Business Secretary Vince Cable said: “This is very sad news for the City Link workers and their families at a particularly difficult time of year. The Government has put arrangements in place to help employees who are made redundant and we stand ready to help.
“City Link employees and self-employed drivers who have their contracts terminated as a result of City Link’s administration will be able to access the Government’s rapid response service, which draws together local partners such as Jobcentre Plus and the skills bodies to deliver support for each person affected.
“In addition, a Facebook page has been set-up to link-up companies holding suitable vacancies with those who have been made redundant, so if drivers can be redeployed into new jobs in this competitive buoyant market they will be.”
Earlier today Mr Cash disclosed details of a possible rescue, saying they had been “made aware of what we believe to be a credible bid to take over some or all of the City Link trading operation”.
But the administrators said this afternoon that an offer they had received “offered no money up front and significantly undervalued the assets to be acquired.”
They said: “The Administrators proposed an alternative structure that would be acceptable and common in these situations.
“The consortium, despite attempts to make them reconsider, declined to amend their original offer.”
The administrators said 371 people have been kept on to deal with remaining parcels and to assist in realising the company’s assets and winding down its operations.
There are still 30,000 parcels waiting to be collected from City Link depots.
Customers who have sent parcels and intended recipients have been advised to collect their items between 8am and 8pm. Administrators expect depots to remain open until “approximately” January 6.