Professor Ian Clark comments on City Link Closure

Deputy Director of the Centre, Professor Ian Clark, interviewed by The Mirror on the collapse of City Link.

Parcel firm City Link announced on Christmas Day that the company was going into administration following substantial losses over the last few years. The company was sold to private equity firm, Better Capital, in April 2013 for £1 and the firm then reportedly invested £40 million in the company before calling in administrators on Christmas Eve. The collapse of the company means the loss of 2,700 jobs; the redundancy for which will likely be paid by the Government rather than Better Capital, who are considered investors in the company rather than employers.

The Mirror article outlines what the collapse of the company means for its employees as well as commenting on the way that private equity firms operate. Professor Clark, whose recent articles include 'Private Equity Buy-Outs – What About the Workers?', is quoted:

“There is plenty of evidence they try to de-recognise unions, renegotiate contracts or run the businesses as if there is no problem, then suddenly put the company into administration.”

You can read the full article published in The Mirror here.

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