Recruiters count cost of City Link collapse

Two leading driving recruitment firms have absorbed losses totalling hundreds of pounds connected to the collapse of logistics firm City Link.
Tue, 13 Jan 2015Two leading driving recruitment firms have absorbed losses totalling hundreds of pounds connected to the collapse of logistics firm City Link.

Blue Arrow and Berry Recruitment had outstanding debts of more than £100k when City Link called in the administrators over the Christmas period.

Charlotte Rush, director at Blue Arrow, told Recruiter the firm is owed around £127k.

“We paid all of our employees that were on contract with City Link. We have absorbed this and have moved on,” she added.

Meanwhile Spencer Berry, operation director at Berry Recruitment, told Recruiter the firm expected a “very minimal” return on its outstanding debt of £100k.

“We have got very healthy figures. We have had an extremely healthy year - it’s not something we can’t absorb.”

This week the Recruitment & Employment Confederation (REC) is writing to Vince Cable, secretary of state for business innovation and skills, and his Labour Party shadow Chuka Umunna, calling for a full government inquiry into the behaviours and decisions made by City Link and its directors in the run up to its insolvency.

Sarah Marquet also contributed to this article.

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