UK Train operator Wrexham & Shropshire will cease operations beginning 28 January 2011.
The organisation noted the economic downturn as a contributing factor and said the company could not see any increase in passenger numbers, but, it is not insolvent and is being placed in administration and all outstanding financial commitments will be met.
The company has undertaken a series of activities to move the business into profit, where the original service of five trains a day was reduced to four in 2009, and two lightly used services were combined to reduce the service to three trains a day in December 2010.
In addition, an agreement was reached with sister company Chiltern Railways to assist with its capacity and the company investigated opportunities for operational and management synergy between Wrexham & Shropshire and Arriva Trains Wales, also owned by DB.
The opportunity to generate income by serving Wolverhampton after April 2012, when contractual restrictions are expected to be removed, was also considered.
The company concluded that the potential for further changes to the company's operations, including any synergy with Arriva Trains Wales, will not improve the financial position sufficiently.
Furthermore, shareholders have invested in excess of £13m ($20.68m) in launching the business and funding its losses, and have now concluded there is no reasonable prospect that Wrexham & Shropshire can become profitable, or offer a return on this investment.
Wrexham & Shropshire restores direct train services between Wrexham, Shropshire and London. Despite growth in passenger numbers, it could not generate sufficient revenues to cover more than 65% of the cost of operating the service and incurred losses of £2.9m ($4.6m) in 2010.
