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RMT union in ‘fire sale’ claim over City Link

The RMT claimed a fire sale of the remaining assets of City Link is under way.
The RMT claimed a fire sale of the remaining assets of City Link is under way.

The RMT union has complained of a “fire sale” as administrators of collapsed delivery firm City Link began selling off certain assets of the business.

Administrators EY announced they had agreed to sell cages, scanners and intellectual property to the DX Group for £1.1 million.

Almost 2,400 jobs were lost when City Link went out of business over Christmas, while a last-ditch bid to save the company failed.

Joint administrator Hunter Kelly said: “This transaction represents our first step in realising the value of City Link Ltd’s assets. We will continue this process over the coming weeks, alongside conducting an orderly wind-down of the company’s operations.”

However, RMT union general secretary Mick Cash said: “It is clear that a fire sale of the remaining assets of City Link is under way, and it is outrageous that the union is being denied a meeting and proper consultation with the administrator when there is a chance to rescue jobs out of the wreckage.”