More than 20 staff face the axe at Bermuda Gas after the firm announced it was to focus on its core business.

The firm said that retail appliance sales, parts and repair services would end and the firm would now concentrate on its original business of propane supply and delivery.

The news means that the Bermuda Gas 2,850 square foot showroom on Pembroke’s Serpentine Road, which opened only three years ago, will also close down.

Walter Higgins, chief executive of Ascendant Group, the parent of Bermuda Gas, said: “The final number is likely to be between 14 and 21 people.

“The company will offer a redundancy package to all affected individuals and will assist them during this transition.”

He added that Government’s department of workforce development would also assist workers who lose their jobs.

Mr Higgins said that its 2014 earnings forecast, released last month, signalled that Ascendant, which also owns Belco, continued to be affected by the recession, healthcare costs and increased competition “across all lines of business”.

He added: “Following a comprehensive review of the company’s operating model, Bermuda Gas has decided to focus exclusively on its core business, the sale and delivery of propane gas in bulk and cylinder sizes to commercial and residential customers and service to commercial customers.

“This should improve operational efficiency and increase customer satisfaction in the process.”

Mr Higgins said the total number of people affected had yet to be decided, but that some were eligible for early retirement, while others could be transferred elsewhere in Ascendant and some could opt to become self-employed contractors.

He added that domestic customer appliance warranties would continue to be honoured.