The administrators of courier firm City Link have announced 2,356 job losses after a bid to buy the company failed.
Many of the firm’s workers found out about its collapse on Christmas Day and had been warned to expect “substantial redundancies”.
The administrators said 371 people have been retained to deal with remaining parcels and to assist in realising the company’s assets and winding down its operations.
City Link’s administrators said that an offer that was made for the company had not been acceptable.
Administrators at EY said the offer made by a consortium “offered no money up front and significantly undervalued the assets to be acquired”.
“The administrators proposed an alternative structure that would be acceptable and common in these situations.
“The consortium, despite attempts to make them reconsider, declined to amend their original offer.”
An internal document circulated by administrators and seen by Sky News earlier this week said the majority of the 2,727 employees would be made redundant on Wednesday.
“As the group is now insolvent it will be unable to make any termination payments to you following your redundancy,” the letter explained.
“However, you may be entitled to make claims to the Redundancy Payment Service (a government department).”
The redundancies will affect the head office in Coventry as well as hubs and depots around the UK.
There will be 468 job losses in “central functions” which includes head office staff, while 279 staff will lose their jobs in the Coventry hub.
The remaining redundancies relate to a number of different hubs and depots across the UK.
Hunter Kelly, joint administrator of City Link Limited, said: “It is with regret that we have to announce substantial redundancies at City Link Limited, which ceased accepting new parcels on 24 December 2014.
“The company endured substantial losses, which ultimately became too great for it to continue as a going concern, and City Link Limited entered administration following an unsuccessful sale process.
“At meetings across City Link Limited’s UK sites on Monday 29 December 2014 and Tuesday 30 December 2014, employees were informed that there would be substantial redundancies as no new business was being taken on.
“Many of these employees were sent home, and informed that they would shortly receive formal correspondence to confirm their work status.”