BUS company chiefs have described as “unsubstantiated” reports that the town’s bus depot has been put up for sale.

Industry magazine Passenger Transport claims it has seen leaked reports showing FirstGroup is seeking buyers for seven operations in England - including Kidderminster’s, at the New Road, Worcester Road traffic island.

FirstGroup told The Shuttle although it had plans for its bus services, it would not go into details but it did not rule out the possible Kidderminster sale.

The news has sparked fears that more jobs in the town could be lost as a result. It is said to be part of the company’s pledge to shareholders to raise £100 million through disposals of “non-core” UK bus operations.

A FirstGroup spokesman said: “The vast majority of our UK bus operation generates good returns with opportunities to improve further. There is scope, however, to reposition our portfolio to concentrate on those markets offering the greatest long-term potential.

“We are developing opportunities for a number of disposals and the unsubstantiated information given to Passenger Transport does not comprise the entire sum of those disposals.

“Our strategy is to bring those businesses to the market in select tranches to ensure stability for our employees and operations. Given the breach of confidentiality that has taken place it demonstrates this is the correct approach.

“At this point, we are not disclosing any more details abut our plans for commercial reasons and to ensure we are able to fully consult with any employees and other stakeholders that may be affected.”

Passenger Transport quoted one industry expert as saying “it is not a good time to be selling bus companies unless they are gold-plated”.

It is unknown whether any interest has been expressed in buying the Kidderminster site, although RATP Dev UK, Go Ahead Group and AIM-listen Rotala are understood to be taking a “close look” at First’s “for-sale” list.