Jon Moulton, the boss of Better Capital that owned City Link has spoken of his deep regret at the attempt to turn around the failing company.“We killed ourselves to try to save this company and we failed" he said.
Over 2,700 City link workers were made redundant on New Year's Eve after it was announced the company was going belly up on Christmas Day. Administrators Ernsnt & Young were appointed to deal with the situation.
Speaking to MPs on Tuesday, Moulton said the move was made with “all the enthusiasm of a man reviewing the details of his own hanging”. Moulton said he had wanted to hold back the announcement of the company's failure until Boxing Day and laid the blame for the Christmas Day notice at the door of the RMT union.
Better Capital lost £20m trying to turn City Link around but the venture proved impossible. City Link lost £3m in December, a devastating blow in the busiest month of the year. The Business and Scottish select committees heard how Better Capital informed the Department for Business, Innovation & Skills of City Link's dire situation on 19 December.
The crunch point came only a few days later. “The final legs ran out when the last buyer ceased to be on the table and the last refinancing ran out. That was the 22nd of December", Moulton said. The venture capital boss told MPs that both he and his firm had taken a hit to their reputation.