http://www.firstgroup.com/ukbus/devon_cornwall/travel_news/news_initiatives/?item=6551&conf=0
North Devon Business Update
Monday 23 July 2012
First Devon and Cornwall today (23 July 2012) announced plans to discontinue its bus services in the North Devon area, including closure of the Barnstaple depot. The company also confirmed that it has started the collective consultation process with trade unions on the possibility of redundancies.
Firsts bus services in North Devon have underperformed for a number of years, despite the introduction of a variety of marketing and promotional initiatives. The company is now faced with extra cost pressures due to the economic climate and cuts in external funding and routes are now being discontinued in order to ensure the long term sustainability of operations elsewhere.
A range of alternative options including the potential sale and transfer of employees and assets to Stagecoach Group plc were fully explored. That option will no longer go ahead following the Office of Fair Trading's announcement on 10 July that it was referring the case to the Competition Commission.
Giles Fearnley, FirstGroup Managing Director, UK Bus, said: "We understand that this news will be distressing for employees affected by the decision and that it will similarly cause our customers in the area some concern. We apologise and will be supporting affected employees over the coming months, as well as working with Devon County Council on the future of bus services in the area. We will give customers ample notice of the date that services will cease to operate in North Devon.
"We will be working hard to minimise the extent of redundancies, trying to redeploy people where possible. We would like to take the opportunity to stress that the decision to close the North Devon operation is a business driven one and does not reflect on the effort or individual performance of the employees in North Devon.
"We are progressing our strategy to reposition and rebalance our UK Bus portfolio to restore operating margins and help facilitate improved growth and returns. The decision by the Office of Fair Trading to refer our proposed sale of our North Devon operations, where we had a uniquely high degree of overlap with Stagecoach, was disappointing. We are confident, however, of future successful transactions in the coming months as a number of potential bidders exist in the markets where we have identified other businesses for disposal.'
First Devon and Cornwall today (July 23) began its official consultation process with affected staff. This will include offering opportunities in other areas. The timescale for closing the business will be confirmed once the consultation with the affected employees has been completed.
Notes to editors
� A timescale will be confirmed in due course.
� The North Devon business comprises of the depot facility in Barnstaple, a fleet of around 30 vehicles and ten routes (Services 1, 2, 3, 5/5C, 8 (operates summer only) 30/30C, 31, 32, X7 and X9). The routes cover Appledore, Barnstaple, Bideford, Braunton, Bude, Coombe Martin, Fremington, Ilfracombe, South Molton, Swimbridge, Westward Ho! and Woolacombe.
� The decision regarding the North Devon business does not affect any other part of the First Devon and Cornwall business.