Three City Link Directors Due At Court Thursday and Friday

by Benson Agoha | Business

It is nearly one year since Delivery Firm City Link collapsed. Three Directors of City Link, the delivery/courier firm that collapse nearly a year ago are due in court today and tomorrow.

CEO David Smith, Finance Director Robert Peto and Thomas Wright are due in courts to explain their role in the collapse.

2,727 workers, 600 of which were in Coventry, were told they would lose their jobs on Christmas Day. But the collapse of that popular company has raised many questions as to why.

But Jon Moulton, founding director of Better Capital - the company which withdrew the funding on which City Link relied, is not expected to be in court to explain why he withdrew the money, although he had given evidence to the Scottish Affairs Committee in January.

Jon Moulton was not a director of City Link and so was not under a duty to consult with employees. However, what role he had, if any, in the decision not to consult remains a mystery – which hopefully the three City Link directors being prosecuted can clarify.

Remarking on the court appearance, RMT General Secretary Mick Cash who just led workers of the Docklands Light Railway on a very successful, 48 hour rock solid strike, said: “Between 22nd December and 26th December 2014, City Link spent £463,000 on lawyers and accountants – the vast majority of that sum went on lawyers."

“In the coming days we may gain an insight into whether at least three City Link directors think that money was well spent.

“However, the City Link workers induced to do overtime for which - partly due to such high expenditure on ‘professional fees’ - they will never be paid, already know the answer.”