A PARCEL delivery firm employing more than 100 workers in the region owed suppliers £30m when it collapsed.

City Link had a shortfall of £62.5m when it appointed administrators on Christmas Eve, and was losing about £500,000 a week.

According to reports, it was behind on payments to suppliers by £30m, with hand-held digital device supplier Barcode Warehouse losing £2.2m.

Staff are also owed £1.28m in wages, holiday pay and pensions, while HM Revenue and Customs is owed £5m from payments including VAT and national insurance.

The firm employed 135 North-East workers, with 56 based at a site near Durham City, 45 at a Newcastle depot, and 34 in Leeming Bar, North Yorkshire.

City Link’s 2,000-strong national workforce found about its demise on Christmas Day.

The collapse came despite its owner Better Capital previously pumping £40m into the business.

Business Secretary Vince Cable has said an inquiry could take place into the firm’s downfall, which would depend on administrator Ernst and Young’s report.

However, the RMT union said any Government action would be too late.