A GWENT travel firm at the centre of a redundancy row is having its licence revoked, it has been revealed.

Up to 40 drivers and staff lost their jobs when 2 Travel closed its Cwmbran depot just days before Christmas.

Now it has emerged that the Swansea-based firm will have its 110-vehicle licence revoked by Welsh Traffic Commissioner David Dixon with effect from January 22.

A spokesman for the Traffic Commissioner said: "We can confirm that this company's international licence will be revoked from January 22 for financial reasons. The company has launched an appeal against this."

Gwent staff are fighting for a redundancy settlement as well as wages and holiday pay they say they are owed.

2 Travel shares were suspended at 1.62p in November, and it was expelled from the Alternative Investment Market of the Stock Exchange on December 30.

Tom Black, a reporter for bus and coach industry magazine Route One, said 2 Travel's problems were very serious.

"It is very rare that a company the size of 2 Travel has its licence revoked," said Mr Black. "The situation has got to be pretty serious for that to happen. This really is a decision of last resort."