The business secretary Vince Cable has decided not to intervene in the collapse of parcel delivery company City Link.
The business, which went into administration on December 24th, was purchased by investor Better Capital two years ago for one pound due to increasing competition from online retailers.
A buyer has yet to be found for the company by administrators Ernest and Young. Better Capital director John Moulton has said that the business would need £100 million to survive. Better Capital expect to recover £20 million from the firm in the current circumstances.
He also claimed that the government was aware of the firm’s difficulties for some time, yet did not call a meeting to discuss a possible rescue plan.
Its 27,727 employees are expected to be made redundant on December 31st, with over 1,000 small contractors also set to lose trade. A small number of workers may be maintained to deal with the 30,000 parcels still in City Link depots, which will not close until January 6th.