Linen Supply of Ireland, which is currently in examinership, has confirmed that it is to close one of its plants in Galway.
The plant is based in Rahoon in Galway city and employs 103 people. LSI has said, however, that 23 jobs will be saved with the opening of a service and logistics office in the city in the coming months. The Rahoon facility is mainly involved in the washing of linen from the hotel and restaurant industry. The company says this sector has been particularly badly hit by the recession.
Also, as part of the restructuring process, LSI expects 40 jobs will need to be filled at its plant in Cork. In total, the company will now employ around 300 people.
LSI said it recently carried out a review of operations at the Galway plant and concluded that it did not have a sustainable future. Examiner Kieran Wallace from KPMG approved the company's decision
The company said it hoped some of the Galway workers would be able to transfer to Cork. LSI also has plants in Spiddal, Cork and Wilton in Dublin.
Under examinership, two of LSI's Dublin plants have already closed with the loss of 200 jobs. The company provides textile rental and laundry cleaning services to companies in the hospitality, healthcare and food industries as well as supplying hygiene equipment and dust control mats.
