John Caudwell lost £3m in City Link failure

Mr Caudwell, who sold Phones4U for £1.4bn in 2006, is the biggest investor in the Better Capital fund

John Caudwell is the biggest investor in the fund that owns City Link (Rex)

John Caudwell, the founder of the collapsed Phones4U mobiles retailer, lost about £3m from the collapse of the City Link courier business over Christmas, The Independent has learnt.

Mr Caudwell, who sold Phones4U for £1.4bn in 2006, is the biggest investor in the Better Capital fund that bought City Link from its previous owner in April 2013.

Jon Moulton, who founded Better Capital and said he expected to lose £2m from City Link’s collapse, said he had spoken to Mr Caudwell before Christmas and that the entrepreneur had been “philosophical” about the loss. “People do not invest in turnaround funds expecting an easy ride on every deal,” said Mr Moulton.

Mr Caudwell controls a fund manager, Signia, where Mr Moulton has been an adviser. Mr Moulton’s son also worked there in the past.