The investment firm behind collapsed parcel delivery service City Link has said it is "disappointed" staff found out over Christmas that they may lose their jobs.
Better Capital issued its first public statement as administrators Ernst & Young (EY) continued efforts to save some of the 2,760 jobs threatened by City Link's demise - revealed by Sky News on Christmas Day.
The RMT union has claimed that EY plan to make more than 2,000 staff redundant on New Year's Eve, with the rest being kept on to help wind down the company.
City Link depots opened today to allow customers and those expecting deliveries to collect parcels.
Better Capital's statement said: "The board of Better Capital PCC Limited is disappointed to report that it was advised ... that the City Link group ... has been placed into administration.
"This statement is being released at the first available opportunity following the Market closure.
"Unfortunately the appointment of an administrator was leaked to the media ahead of the intended announcement.
"The directors very much regret the impact on the employees of City Link receiving such bad news on Christmas Day.
"In the Company's Interim Financial Report as at 30 September 2014, the Board reported that City Link was experiencing a continued lack of profitability and that various options to maximise the value of the investment were being considered.
"At this time, the investment was written down by 50% from £40m to £20m, such value being determined on an estimated liquidation valuation basis.
"Following a very detailed review of City Link's strategy and prospects, including unsuccessful discussions with a number of counter-parties to effect a sale on a going concern basis ...(it was) concluded that it was inappropriate to commit further capital.
"Accordingly, in light of continued substantial losses, City Link could not continue as a going concern."
Sky News reported on Saturday that rival delivery companies Royal Mail and DX Group were two firms approached about a pre-Christmas rescue but neither was able to agree a deal.
The founder of Better Capital, the veteran venture capitalist Jon Moulton, told the Financial Times on Monday he had lost "several million pounds" of his own money in City Link and had explored "every possible way" to save it.
The newspaper added that taxpayers were set to foot the looming redundancy bill because City Link was insolvent.
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