Irish Youth Hostel Organisation in jeopardy due to financial crisis

Nearly 20 hostels around the country are in jeopardy, along with up to 60 jobs, because of a financial crisis.

Irish Youth Hostel Organisation in jeopardy due to financial crisis

The Irish Youth Hostel Organisation is in danger of closure next month after 88 years.

Nearly 20 hostels around the country are in jeopardy, along with up to 60 jobs, because of a financial crisis.

An Óige runs 18 youth hostels, owning eight, in Kerry, Wicklow, Galway, Donegal and Cork, and has the franchise for the other ten.

But they are now in jeopardy because of a funding crisis.

In May, An Óige was forced to close the Dublin International Hostel at Mountjoy Street in the city centre, which accounted for 60% of its income.

There were issues with the electrical system in the listed building that would have cost €2m to fix.

An Óige's financial difficulties stem from borrowing substantial amounts in the 90s to modernise hostels.

Now, it says it will run out of money next month.

In a letter to the Finance Minister Paschal Donohue, it is asking the government for funding to prevent its closure.

An Óige is requesting a loan of €3.5m to pay off debts owing to AIB.

It says with this support, it could work with the state to create a 280-bed hostel at the Mountjoy Street premises in Dublin to house the city's homeless.

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