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29/12/2014 - Murky goings on at City Link

citylinkvanThe owners of City Link stand accused of asset-stripping and cash grabs while thousands lose their jobs.

Business Secretary Vince Cable faced union calls for a “forensic investigation” into the collapse of the company, whose tax-dodging parent Better Capital (BC) stunned workers by announcing they were out of a job on Christmas Day.

Up to 2,700 former staff face P45s by New Year’s Day.

Hundreds more “owner-drivers” subcontracted to operate branded vans will receive no compensation at all.

Suspicions of dodgy goings on have been fuelled by the revelation of corporate records which show that three City Link directors lodged papers at Companies House earlier this month for a firm named “City Link B2b.”

The Coventry address listed is the site of the courier firm’s current HQ, with all three of its directors listed as senior members of the current management team.

Among them are City Link CEO David Smith and Better Capital executive Thomas Wright.

An RMT spokesman said revelations that a new company had been set up by current directors was “fuelling concerns about what was going on behind the scenes,” suggesting that the trio could be set to buy back “what’s left from administrators at a knock-down price.”

Pat Harrington of Solidarity commented: "To add insult to injury the taxpayer is likely to have to foot the bill for the redundancies because the company is insolvent. The RMT is right to demand an investigation."