DX Group has bought some of City Link’s assets for £1.1m as the administrator.
DX, which is headed up by former City Link MD Petar Cvetkovic, has bought assets including cages, scanners and certain intellectual property, the nature of which has not been disclosed.
The sale comes as a spokesman for administrator Ernst & Young (EY) told Motortransport.co.uk that City Link’s leased the majority of its 1,700-stong vehicle fleet prior to it entering administration on Christmas Eve. This included around 100 tractor units, as well as vans and cars.
The administrator is in the process of returning the leased vehicles to their suppliers, which have not yet been named.
An EY spokesman said it was currently in talks with several parties over the failed firm's remaining assets.
Joint administrator Hunter Kelly 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.”
DX chief executive Petar Cvetkovic said the company is doing all it can to provide opportunities for some of the 2,300 former City Link staff and around 1,000 self-employed contractors now out of work.
“It is very sad that City Link has been unable to continue as a going concern, particularly for its employees and contractors,” said Cvetkovic, who held the position of MD at City Link between February 2008 and July 2009.
- Rival operators including TNT UK and APC Overnight are to make jobs available for former City Link staff. APC is today holding an open day at its Cannock HQ for up to 100 drivers, while TNT is offering jobs for drivers and subcontractors. Leighton Buzzard-based Miniclipper is also looking to recuit 7.5-tonne vehcile multi-drop drivers "who have been loyal to their employer to the end", as well as sortation and warehouse people as it looks to expand this year. Miniclipper contact is Simon Light, 01525 244700.
