SOME assets of collapsed delivery firm City Link have been sold, sparking claims of a “fire sale” .
Administrators EY announced an agreement to sell cages, scanners and intellectual property to the DX Group for £1.1 million.
Almost 2,400 jobs were lost, including at Morley, when City Link went out of business over Christmas.
Hunter Kelly, joint administrator of City Link, said: “This transaction represents our first step in realising the value of City Link Limited’s assets. We will continue this process over the coming weeks, alongside conducting an orderly wind down of the company’s operations.”
Petar Cvetkovic, chief executive of DX, a parcels, mail and logistics firm, said: “It is very sad that City Link has been unable to continue as a going concern, particularly for its employees and contractors.
“The administrators are now proceeding with an orderly sale of assets.”
But Mick Cash, general secretary of the Rail, Maritime and Transport union, accused the administrators of starting a fire sale of assets and denying the union a meeting and proper consultation.
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