Centrebus has announced it is to close its depot in Saxby near Melton as the company battles rising costs, congestion and falling customer numbers.
The company is in talks with employees about the move which would see services operated out of Grantham and a smaller base at Coston.
Matt Evans, Managing Director at Centrebus, said: “Rising costs, reducing passenger numbers and worsening traffic congestion have led us to make this difficult decision in an attempt to streamline the business and as a result close our depot at Saxby in Leicestershire. Discussions with our affected employees and other stakeholders are ongoing”.
The company has outlined a number of changes to its services which will come into effect on August 19.
In a statement this week Centrebus confirmed that the depot in Saxby will close: “Rising costs, reducing customer numbers and worsening congestion have led to action needing to be taken to ensure that the business remains on a firm footing for the future.
“The company has worked closely with both Leicestershire County Council and Rutland County Council who are the local transport co-ordinators in their respective areas and have the ability to support local bus services that cannot be sustained on a commercial basis.
“Following a lengthy review of its operations in the Melton area a difficult decision has been made by the board to close the Saxby depot and move the majority of the existing services to operate out of Grantham whilst at the same time setting up a new smaller site in Coston for the more local services.”
The news comes after it was announced in December last year that Leicestershire and Rutland County Councils had agreed to spend £60,000 to ensure the Leicester-Uppingham 747 bus service was kept operating for another year. Bus firm Centrebus has said it would discontinue the service because it was not cost effective. However the councils’ subsidies for that route will keep it going to January 2018.