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Thursday 8th
posted by Conrad Landin in Britain

CITY LINK investors should back off from their bid to rake in even more cash from the failed company, a senior MP warned last night as the firm’s last 300 workers were laid off.

Katy Clark, who recently stood to be deputy leader of Scottish Labour, joined RMT union general secretary Mick Cash in a call for a “full investigation” into the firm’s collapse.

Mr Cash warned that investment firm Better Capital will get “first call” on recovered cash.

Ernst and Young, the City receivers charged with winding up the failed company, have announced a deal to flog off £1 million in hard assets to rival parcels giant DX.

Mr Cash said: “Today the remaining 300 City Link staff who escaped the sack on New Years Eve will be told that they are out of a job. The tide of human misery unleashed by the collapse of the company over Christmas continues to swell.”

He added that Better Capital had driven “the company over the cliff” but had ring-fenced its investment as secured loans, meaning they would be guaranteed money from administrators.

Ms Clark said: “It cannot be right that those responsible for running the company at the time of the collapse are top of the queue to receive any money raised as its assets are sold off.

“There are very important questions for the government, City Link and the administrators to answer about the collapse of City Link, most importantly what steps need to be taken to protect workers in future and prevent a repeat of this appalling episode.”