Twenty-two jobs at a Glenrothes parcel depot are at risk after delivery company City Link went into administration on Christmas Eve.
The company, which is owned by investment firm Better Capital, called in administrators from professional services firm EY after years of “substantial losses”.
The administrator said it expected “substantial redundancies” over the coming days among its 2727 staff, because no buyer had been found to save the troubled company.
Operations at the company’s depots across the country - including in Glenrothes’ Glover Road - were suspended until Monday, when customers and recipients were able to collect their parcels.
Hunter Kelly, joint administrator, said: “City Link Ltd 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... Despite the best efforts to save City Link Ltd, including marketing the company for sale, it could not continue to operate as a going concern and administrators were appointed.”
Administrators said employees ultimately affected by redundancy will be offered appropriate advice and support.
While some staff will be retained to help return parcels to customers and assist in winding down operations.