AN inquiry could take place into the collapse of delivery firm City Link, Business Secretary Vince Cable has said.

Dr Cable said any investigation will depend on the findings from administrator Ernst and Young.

A dozen remaining workers at City Link’s bases in Belmont Industrial Estate, near Durham City, Leeming Bar, in North Yorkshire, and Newcastle found out earlier this week they were losing their jobs.

The move followed 123 redundancies across the three sites and almost 2,400 nationally after the firm went out of business over Christmas.

Responding to a question from Chuka Umunna, Labour’s Shadow Secretary of State for Business, Innovation and Skills, Dr Cable said the Government could look into the situation.

He added: “This was a very, very sad and dispiriting event for workers.

“I think the company itself can answer for its own behaviour.

“The fact is, it was no longer viable and it was put into administration.

“There will be a report from the administrator to our insolvency service and, depending on what it says, we may well want to initiate an investigation.”

However, Mick Cash, general secretary at the RMT union, said ministers were acting too late.

He added: “The Government needs to find out what was going on in the run-up to the collapse and needs to stop other speculators from hanging their workforce out to dry in this callous way.”