
The British parcel delivery firm City Link, which went into administration on Christmas Eve, announced on New Year's Eve that it would be cutting 2,356 jobs.
The company's administrators from Ernst & Young also said in a statement on Wednesday that 371 employees would be kept on to deal with remaining parcels, help sell off assets and wind down operations.
"It is with regret that we have to announce substantial redundancies," Hunter Kelly, one of the administrators, said in the statement.
Dashing trade union hopes of a last-minute rescue bid, it also said a consortium wanting to buy the company had "offered no money up front and significantly undervalued the assets to be acquired".
The administrators said earlier that the company had been hit by intense competition, changing market needs and difficulties in cost-cutting.
The announcement of the bankruptcy came on Christmas Day, prompting angry reactions from trade unions.
"This is the bitterest blow any group of workers could receive on Christmas Day," said Mike Cash, general secretary of the RMT trade union.
"It is absolutely shocking that the company have sprung this announcement once all the Christmas deliveries have been completed," he said.
The company's website said it began delivering parcels in 1969 and had an annual turnover of £300 million (382 million euros, $467 million).
But Kelly said it had suffered "substantial losses over several years" and had "all but used up" a £40-million investment made in 2013.
The founder of City Link's parent company, Better Capital, has apologised for the firm's collapse but said it was "not mishandled".
Jon Moulton, a veteran venture capitalist, also defended the payment of redundancies through a taxpayer-funded scheme saying that City Link had "paid a fortune" in taxes.
GMT 09:47 2018 Tuesday ,23 January
SAP unveils big push into French tech start-upsGMT 05:07 2018 Tuesday ,23 January
Noble Group shares surge 37 percent on buyout talksGMT 19:07 2018 Monday ,22 January
BAKS spent Dh225m on charity projects in 2017GMT 22:52 2018 Sunday ,21 January
French firm "recalls baby milk product"GMT 22:27 2018 Sunday ,21 January
US company plans funds that double bitcoin price movesGMT 21:23 2018 Sunday ,21 January
Pence starts Mideast tour in Egypt amid Arab angerGMT 08:54 2018 Saturday ,20 January
Million-euro bill for firm behind Paris bike-share chaosGMT 10:47 2018 Friday ,19 January
German chemical giant BASF sees 'significant' profit leap

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Send your comments
Your comment as a visitor