STAFF at the Basingstoke branch of national courier service City Link face an uncertain future after the company announced on Christmas Eve that it had gone into administration.

The Coventry-based company, which has a depot in Bilton Road, Basingstoke, called in administrators Ernst and Young on Christmas Eve after it suffered “substantial losses”.

The company, which employs 2,727 people, is owned by investment firm Better Capital.

No redundancies have been made at the current stage but an announcement on the number of expected redundancies will be made in the coming days as no buyer has been identified.

Hunter Kelly, joint administrator to City Link Limited, said: “City Link Limited has incurred substantial losses over several years. These losses reflect a combination of intense competition in the sector, changing customer and parcel recipient preferences, and difficulties for the company in reducing its cost base.

“The strain of these losses became too great and all but used up Better Capital’s £40m investment, which was made in 2013 and intended to help to turn around the company.

“Despite the best efforts to save City Link Limited, including marketing the company for sale, it could not continue to operate as a going concern and administrators were appointed.”

He added: “We have temporarily suspended operations at all transport hubs and depots until Monday, December 29, 2014, when we intend to reopen depots to the public to enable customers and intended recipients to collect their parcels.

“We will also provide support to employees relating to potential redundancies. We are now beginning the process of realising the Company’s assets.”

City Link has stopped accepting parcels from customers at the company’s head office, its transport hubs and its 53 depots including Basingstoke, until Monday, to allow the administrators to assess the company and the status of existing orders.

Customers across Basingstoke who placed parcels with City Link on Christmas Eve are urged to go to the Bilton Road depot to pick up their parcels as soon as possible on or after Monday when the Basingstoke depot will re-open.

The company’s online parcel tracking system remains live to enable customers to locate their parcels.