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?
DX’s chief executive Petar Cvetkovic was Managing Director of City Link before going to DX, so probably knew quite a lot about how City Link operated.
Perhaps if they want to try to capture some or all of CL previous customers a first step would be to offer to the Liquidators to collect and distribute all the parcels that CL did not manage to deliver. It would certainly give them a lot of brownie points with shippers who had feared that they had lost those parcels.
Whilst I agree to a point Chris T a lot of the original senders would have sent a replacement parcel or refunded the customer by now so will not want the parcels sending onto the customer but will want it returning to them., are DX or anyone else who offers to do this likely to even be able to contact the senders and ask them what they want doing with the parcels, even if they wanted to would City Link’s administrators give them the senders details, I would doubt it.
Looking at the address labels on the various items that have been delivered here by courier they all have the name of the original shipper on them. So OK DX sorts and delivers by Shipper rather than by the original recipient. Maybe a bit more time consuming but possible. And as I suggested originally worth a few brownie points in the never ending search for new customers.
The “Intellectual Property” that DX has purchased is probably the customer list…
Probably the URL….
City link has no customers, a list would be worthless, nobody sits around for a week waiting for it to get sorted out, they have gone to another courier.
DX probably paid for the software that the scanners use to do the routing ( thought to be the best and easiest to use of all the courier companies), that on its own would be worth the money they paid.
I suspect this is a case of buying the technology and depots but leaving the staff out of the equation. I can not see why DX would want to take on 2,700 potential thieves!!
As regards the customer DB it is probably quite short so won’t have much value anyway.
DX may have cherry picked the technology, cages, etc, and I expect thats part of a bigger plan which I doubt includes ex CL employees.
The demise of CL is a good thing and I for one won’t be shedding any “crocodile tears” as I watch its destruction.
Dole time guys!!
Long live the Revolution!! :)
The depots were probably leased so they were not part of the asset sale (some of the sorting equipment used in the depots may have been sold to DX).
The other courier companies may look at the depots, but only as vacant property. If they do move into an ex-City Link depot it would be because it fills a gap in their network or has an advantage over their existing nearby depot.
The staff would only be taken on by a new company in any number if they are expanding in a region.
Looking at Parcelmonkey DX seems to have the least flexible pick-up arrangements (at 18:00 on Sunday it will only allow me to book a collection on Tuesday).
They may have the most to gain from the acquisition of City Link’s technology.
Awaiting a delivery from a supplier & I noticed they are now using DX, whereas they previously used Citylink, so they are gaining from the later demise….
I bought something from a ebay seller and got bogged down with Parcelmonkey & DX.
Their tracking was bad (maybe improve now they have Citylink’s scanners) & they do not like having to re-attend to deliver.
Parcelmonkey seem to take the undelivered items into their Southampton base, then try to charge you again for redelivery instead of returning to sender if they cannot deliver……
Oh, and if you don’t pay the extra they keep the packet…….
Parcelmonkey don’t return to sender and then keep package if you don’t pay extra for redelivery? Thats just outrageous.
Cheeky little monkey’s!
Petar Cvetkovic was the Managing Director of CityLink before going to DX . Interesting, I wonder if sale of assets to DX is maximising value. Doubtless all this is just a coincidence and obviously totally legit……. but I could understand if some people thought it may be an inside job!
Long live The Revolution!! :)