It closed its last railway line in July 1953 but continued to operate bus services under the name Lough Swilly Bus Company until April 2014, becoming the oldest railway company established in the Victorian era to continue trading as a commercial concern into the 21st century.

[3] Following a High Court petition by HM Revenue and Customs, the company went into liquidation and operated its final bus services on 19 April 2014.

[5] In 1887, ownership of the Letterkenny Railway passed to the Irish Board of Works,[4] which continued the agreement by which the L&LSR operated the line.

At Tooban Junction (as the name implies) the railway branched, north into Inishowen and south into County Donegal proper.

Northwards it ran through Inch Road, Fahan, Buncrana, Ballymagan, Kinnego, Drumfries, Meendoran, Clonmany, Ballyliffin, Rashenny, Carndoagh Halt, and Carndonagh.

Southwards it ran through Carrowen (near Farland Point), Newtowncunningham, Sallybrook, Manorcunningham, Pluck, Letterkenny, Oldtown, New Mills, Fox Hall, Churchill, Kilmacrenan, Barnes Halt, Creeslough, Dunfanaghy Road, Falcarragh, Cashelnagore, Gweedore, Crolly, Kincasslagh Road, Dungloe and terminating in Burtonport.

[7][8] The four killed were Philip Boyle and his wife Sarah from Arranmore Island, Una Mulligan from Falcarragh and Neil Duggan from Meenbunowen, Creeslough.

The majority of its bus fleet, with the exception of those used for holiday touring, was more than 10 years old, mainly consisting of 1994 registered Dennis Darts.

"[12] In March 2014, HM Revenue & Customs petitioned the High Court to wind up the company due to substantial debts owed to them and other creditors.

[15] Bus Éireann and Ulsterbus took over some of the routes, having ensured transportation after the 2014 Easter holidays for the 2,000 schoolchildren who previously depended upon Lough Swilly services.

It detailed alleged cross border contraband smuggling and some irregular payment methods using local produce.