Hills Department Store in Spalding will close in the New Year after recently completing 60 years of trade in Spalding.
The store on Broad Street said trading has been “very challenging” and also blamed the extension to Springfields Shopping Outlet after councillors approved plans for a major expansion this week.
It blamed an “unfortunate lack of investment or support from its council” and employment costs have “risen considerably”.
A statement from the directors said: “Coronavirus has only exacerbated an already difficult situation which is why as a family, regretfully and with very heavy hearts consider it the best option to bow out now rather than put the business under further financial pressure and risk the decision ultimately being taken out of our hands.
“Our family are acutely aware of the impact that this closure is likely to have on our employees, customers and the town, it goes without saying that the decision has not been made lightly, for every purchase which is not made on our high street is another nail in its coffin, please support your small shops whilst we still have some.
“We cannot thank our loyal customers enough over the 60 years for their support we will miss all of you very much.”
The Hills Furniture Store on Bridge Street continues to trade and is unaffected by the closure of the department store.