Former City Link directors cleared over redundancies

Three former directors at the parcel delivery firm City Link have been cleared of breaching labour relations law when firm collapsed last Christmas Eve.

In the West Midlands, more than four hundred of those who lost their jobs were based at its headquarters in Coventry. Staff at depots in Birmingham, Stafford, Shrewsbury and West Bromwich also lost their jobs on New Years Eve, along with 143 staff at depots in Nottingham, Peterborough, Lincoln and Northampton.

David Smith, Robert Peto and Thomas Wright were accused of failing to give 45 days notice of the dismissals. The judge said all three gave evidence that they genuinely believed a buyer could be found.

Chris Halpin reports.

The laywer for three former directors of City Link says his clients are 'pleased' to be acquitted of failing to notify the Business Secretary of more than two thousand redundancies last December.

But lawyer Nicholas Greenacre added that they felt 'sadness and regret' that the company, and more than two thousand jobs, could not be saved.

The trade union RMT has called the acquittal of three former City Link directors a "bitter pill to swallow" for those who lost their jobs at the firm.

More than 2,356 redundancies were announced when the company collapsed on Christmas Eve last year.

The judge in the trial of three City Link directors over redundancies at the firm last year has found that they "genuinely believed" another buyer for the company could be found.

Thomas Wright, Robert Peto and David Smith were accused of failing to notify the Business Secretary of more than 2000 redundancies when the company collapsed on Christmas Eve last year.

But Deputy District Judge David Goodman found that they "genuinely believed a sale in administration was not only possible but quite probable".

He pointed out that the administrators Ernst and Young had identified a potential buyer for the company after it went into administration - and that a firm offer of £17m had been made.