City Link, a Coventry, United Kingdom-based courier company, has announced that it will lay off 2,356 employees currently working for the organization.
"It is with regret that we have to announce substantial redundancies at City Link Limited, which ceased accepting new parcels on 24 December 2014," City Link administrator Hunter Kelly told BBC News.
"The company endured substantial losses, which ultimately became too great for it to continue as a going concern, and City Link Limited entered administration following an unsuccessful sale process."
Although the company was offered a bid for its purchase, administrators have claimed the potential buyer "offered no money up front and significantly undervalued the assets to be acquired," the website also reports.
The decline of the courier company has particularly affected the 370 employees who will continue working there and will be managing the parcels that remain in storage units. Many have also criticized City Link's collapse, citing bad management and worrisome of the unforeseen consequences it may bring about.
Ernst & Young has been appointed as the administrator company.
"Pulling the plug on any efforts to save City Link is a disgraceful and cynical betrayal that will wreck the lives of our members, many of whom are owed thousands of pounds," RMT union leader Mick Cash said, according to BBC News.
"Those responsible will slink away with their own resources ring fenced and leaving the taxpayer to pick up the redundancy tab.
City Link offered next-day service in and around the Coventry section of the United Kingdom and was founded in 1969.
