Budget Travel Closes 14 Outlets

Budget Travel has confirmed it will close 14 of its stores around the country by the end of next month.

The news comes shortly after the travel agent announced a 30 day consultation with staff on "restructuring plans".

The company said it is still talking to staff about the number of redundancies that are likely to result from the closures.

A spokesman said that although some closures and job losses were definite, the company was still examining a number of options which might result in some of the jobs being saved. The company currently employs 266 people.

Speaking last month, Eugene Corcoran Chief Executive said that the key to continued success for Budget Travel would be reducing the business's cost base and maximising its flexibility to respond to increases or decreases in consumer demand: "We need to restructure the business for current and future market conditions in the context of a market where demand for holiday packages will be significantly more volatile from year to year than it has been in recent years."

Mr Corcoran said the demand had fallen substantially across the Irish travel business this year: "We estimate that overall demand amongst Irish tour operators is in the order of 40% down on last year and our experience reflects that.

"The key to the future is to have a business model that has maximum flexibility to respond to volatile demand while remaining profitable".

The shops that will close are at Athlone, Clonmel, two in Cork, two in Dublin, Dundalk, Ennis, Finglas, Limerick, Mullingar, Swords, Tralee and Wexford.

The company operates 39 shops in the Republic. As well as closing 14 next week, it says a further four are under "serious threat".

(DW)