DX snaps up City Link assets
DX (Group) is an independent parcels, mail and logistics network operator. Their haul includes cages, scanners and some intellectual property from the City Link fire sale. We reported the City Link administration initially on Christmas Day here on Tamebay.
Subsequently, we wrote about it as some more details became clear here.
Regarding the latest developments, the City Link administrators EY said: “This transaction represents our first step in realising the value of City Link Limited’s assets. We will continue this process over the coming weeks, alongside conducting an orderly wind down of the Company’s operations.”
DX chief executive Petar Cvetkovic says of the deal: “It is very sad that City Link has been unable to continue as a going concern, particularly for its employees and contractors. (Can you see the crocodile tears, reader?- Ed.) The administrators are now proceeding with an orderly sale of assets and we have made a limited investment to acquire certain assets. We are also doing all we can to provide opportunities for former City Link employees and contractors and to offer solutions to customers who may need a new carrier.”
So what has DX bagged for £1.25m? A good deal is the first answer.
The scanners themselves seem like a bargain if we look back to a City Link press release from October last year. Back then they announced City Link had invested £2m in handheld scanners for drivers. Back then City Link said:
“City Link is investing £2 million in new hand-held scanners for all of its drivers to improve efficiency, effectiveness and provide a better service to customers. The 2,500 scanners are being phased in on a depot by depot basis in time for the Christmas peak and every driver who represents City Link will be given one of the new Motorola MC67 models to use.”
So DX have bagged those scanners plus other things. Sounds like a deal?
Have you been affected by City Link’s collapse? Are your trading issues resolved?