City Link workers in South Yorkshire to find out redundancy fate

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Dozens of South Yorkshire workers at the collapsed City Link parcel firm will find out in the next 48 hours if they are losing their jobs.

The firm employs 34 people at its Rotherham depot at Bradmarsh Business Park, Templeborough.

The company, which employs more than 2,700 people around the country, went into administration on Christmas Eve.

Administrators Ernst & Young have said it is expected there will be ‘substantial redundancies’, with union RMT saying it expects more than 2,000 workers to lose their jobs.

Workers around the country have been informed over the past few days about who is losing their jobs.

City Link, which was founded in 1969, was acquired by restructuring specialist Better Capital in April 2013, with a £40m investment made in the company.

Better Capital has said the appointment of administrators was leaked to the media ahead of the intended announcement, meaning staff found out their jobs were at risk on Christmas Day.

It said ‘continued substantial losses’ meant the firm could no longer continue as a going concern.

A statement from Ernst & Young said: “Employees that are not immediately affected by redundancies will continue to be employed, and paid, to help return the estimated 40,000 parcels remaining in City Link’s depots to customers and intended recipients, as well as assist in realising the company’s assets and winding down its operations.

“The joint administrators will confirm the number of redundancies across City Link Limited’s sites when all employees have been informed.”

It follows the recent collapse of a South Yorkshire wire manufacturing company, which has cost 40 jobs.

Stocksbridge-based Fox Wire, which dates back to 1842, is being wound down. Administrators P&A Partnership said attempts to obtain new finance to support the business had failed.

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