THE IRISH Daily Star Sundayis to cease publication with the loss of 17 jobs.

The Sunday newspaper, published by Dundrum-based Independent Star Ltd, was launched in 2003 but never recorded a profit.

It lost more than €1 million last year and was projected to lose more money in the current year.

The Sunday Starachieved average weekly sales of about 54,000 in the first half of last year – just more than half the level achieved by its sister daily title.

This decision will have no impact on the Irish Daily Star, which will continue to operate as normal. It employs 117 staff and 2010 profits are forecast at €6 million.

Independent Star Ltd is jointly owned by Independent News & Media and Richard Desmond’s Express Newspapers in the UK.

Management at the Sunday title are due to meet with staff at the Burlington Hotel today to discuss redundancy terms.

Paul Cooke, managing director of Independent Star Ltd, said the decision to close the Sunday paper was taken due to a combination of the severe economic downturn and continued below-cost selling by UK-based Sunday titles.

“Unfortunately the deterioration in market conditions particularly over the last two years has left the company with no option but to cease publication.”

It is understood that the British version of the Sunday Starwill be made available here.

Staff were informed of the decision at a meeting on Wednesday morning, where they were addressed by Mr Cooke, Sunday Stareditor Des Gibson and Ger Colleran, the editor of the Irish Daily Star. "We weren't that surprised. We knew it wasn't going well," one staff member said.

The National Union of Journalists expressed “surprise and disappointment” at the closure.

In a statement, Nicola Coleman, the union’s Irish organiser, said: “We would like the opportunity to discuss alternatives to redundancy including redeployment.”