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Laundry firm Linen Supply Ireland is to close one of its Galway plants, it was announced today.

The plant, which is based in Rahoon in Galway city, employs 103 people and is mainly involved in the washing of linen from the hotel and restaurant industry, a sector that has been badly hit in the dowturn.

A review of operations at the Galway plant concluded that it did not have a sustainable future.

A spokeswoman for the company described it as a sad day for the company in Galway. “As we’ve pointed out previously the textile side of the business has been very badly hit by the downturn in the hospitality and retail sectors and the outlook remains grim,” she said.

The examiner appointed to the firm in September, Kieran Wallace from KPMG, approved the company’s decision

“Unfortunately the continued drop in demand, allied to high operational costs means this plant does not have a viable future,” he said.

However, the company said 23 jobs would saved when the company opens a a service and logistics office in Galway in the coming months.

As part of the restructuring, the company also expects to have 40 positions ready to be filled at its Cork plant. The company said it hoped some of the Galway employees would be able to transfer there.