Business Secretary Vince Cable has said the news of City Link being plunged into administration is a "bitter blow" for the parcel company's workforce.
In a statement the Liberal Democrat minister said:
This is a bitter blow to the workforce, many of whom have served the company loyally and now face huge uncertainty over Christmas. I have asked my officials to be kept abreast of any developments in this case and I will happily meet the union in the New Year.
The creator of a social media campaign to save nearly three thousand jobs at risk at Coventry-based delivery firm City Link has told ITV News Central why he began the appeal.
The editor of The Complete Traffic Control Network, which is also based in Coventry, has begun a Twitter campaign to help spread news of replacement jobs for the workers under threat at City Link.
"Christmas is supposed to be a time filled with happiness, but thousands weren't able to share that, as their career prospects were thrown into doubt - with little or no explanation given. After reading about the fate of the City Link workers, I felt something had to be done.
"So, I took to social media and began the #CityLinkSaviours campaign early this morning. The main reason behind this being simple, no-one should have to go through what these loyal, hardworking and deserving people are going through - especially at this time of year. Since our initial tweets - we've been inundated with job offers for anything from bus drivers, to food distribution operatives.
"We have also been contacted by former employees of the courier firm asking for guidance, we have then tweeted a personalized appeal for job offers in their county. We've even had offers from rival firms - offering City Link workers a fresh start.
I'd like to thank everyone who has shared our appeal, and for their unrivalled support - hopefully we can help some of those affected back into work by the New Year."
See more on the social media campaign here.
We're based in Cov, not far from @citylink - We're appalled at their attitude / lack of communication with loyal employees. Disgraceful.
We're appealing to all parcel courier / freight companies in the UK to assist us in a campaign to get #CityLink workers back on track..1/2
The Shadow Business Secretary Chuka Umunna has tweeted his sympathy for City Link workers, saying he hopes a buyer can be found soon. Nearly three thousand jobs are at risk at the Coventry-based delivery firm.
1/2 Feel terribly for CityLink workers subjected to Xmas uncertainty. Its inexcusably cruel allowing things to reach this point at this time
2/2 I very much hope that a buyer can be found for as much of the City Link business as possible so the maximum number of jobs can be saved
More on the RMT union calling for an urgent meeting with the Business Secretary about the City Link jobs here.
The RMT union, which represents under-threat City Link workers, has called news about the timing of the jobs "disgraceful". Nearly three thousand workers are facing redundancies over the holidays.
The RMT's calling for urgent talks with both the administrators Ernst and Young and Business Secretary Vince Cable MP. The union says delays to swift action, due to what they refer to as the "cynical" timing of the announcement , could damage chances of rescuing the thousands of jobs under threat.
It was revealed on Christmas Day that the Coventry-based delivery firm had gone into administration. The firm has 2,727 employees. Administrators were called in after years of "substantial losses".
The RMT say it had been told City Link was in administration on Christmas Eve, a fact neither the company or the administrators were prepared to confirm publicly until the following day.
City Link operations have now been suspended at all its depots until Monday. Customers and others expecting deliveries will then be able to collect their parcels.
"The delayed timing of the announcement that City Link was in administration to tea time on Christmas Day stinks to high heaven. Not only was it the most brutal and callous way to treat nearly 3000 staff but RMT believes there may have been more cynical motives behind it which we want the government to investigate.
"The disgraceful timing of the City Link announcement at the start of the festive season must not be allowed to delay and hamper efforts to rescue the jobs. That is why RMT is demanding urgent meetings with both the administrators and Vince Cable, we will tolerate no dragging of heels".
"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 #40 million 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."
Click here for more on the story, including what to do if you're a City Link customer waiting for a delivery.
The John Lewis retail group says it has transferred all its business with delivery company City Link to alternative carriers in response to the "regrettable news" that the firm has gone into administration.
The RMT say they told their members yesterday that it understood wages owed up to December the 31st would be paid, but that any further payments are not guaranteed.
"Massive body blow to all our members at City Link who have made great efforts and sacrifices to their pay and terms and conditions in order to make the company a success since its current owners took control in 2013".
"Substantial redundancies" are expected at the Coventry-based delivery firm City Link over the coming days because no buyer had been found to save the troubled company.
Professional services company EY said a number of staff will be retained to help return parcels to customers and help with winding down the company. It was founded in 1969, and has a fleet of 1,700 vehicles. The company's website said it delivered 60 million items across the UK and worldwide each year.
Customers who placed parcel orders with the company on Christmas Eve and the intended recipients who have been notified of a failed or pending delivery, are urged to retrieve their parcels as soon as possible on or after December the 29th.
Customers can do so at the company's 53 depots throughout the UK, which are remaining open for a short time to allow enable people to collect their parcels.
City Link's online parcel tracking system remains live, and a help phone will be open on Saturday December the 27th and from December the 29th.
Union leaders have vowed to do everything in their power to fight for the thousands of jobs put at risk with the collapse of City Link into administration.
Mick Cash, general secretary of the RMT union, said:
This is the bitterest blow any group of workers could receive on Christmas Day and it is absolutely shocking that the company have sprung this announcement once all the Christmas deliveries have been completed.
RMT will do everything within its power to mobilise a political and industrial fight to save the thousands of jobs that have been put at risk as a result of this shock announcement.
Around 2,700 jobs are at risk after one of the UK's biggest parcel delivery services companies fell into administration on Christmas Eve.
Coventry-based City Link is owned by investment firm Better Capital, headed by Jon Moulton, the veteran venture capitalist and it is understood to count John Lewis among its largest clients.
Professional services company EY have confirmed that they have been appointed as Administrators.
EY said it expected "substantial redundancies" over the coming days because no buyer had been found to save the troubled company.
Operations have been suspended at all its depots until Monday, when customers and recipients will be able to collect their parcels.