The Co-op supermarket in Montrose is to close with 37 people losing their jobs.
The store on Basin View, next to Montrose Train Station, will shut its doors on August 1.
The decision is also believed to affect staff at the clothing store Peacock’s, which has a retail outlet within the Co-operative building.
The supermarket has been in business in the town since January 2010 and the building has been a food store for 37 years, previous to being a Co-op the shop was run by Somerfield. It will continue to be a food store as the premises has been bought Aldi.
A spokesperson for The Co-operative Food said: “I can confirm that we have agreed to sell our food store in Montrose to Aldi.
“The Co-operative Group continually reviews its retail estate, and we have made the decision to focus on smaller convenience stores and sell those trading outlets that do not align with our strategy.
“The consideration to sell the store is in no way a reflection on the hard work and commitment from colleagues working at the Montrose store.”
It it understood the Scotmid co-operative convenience store on Montrose High Street, which also operates as Post Office and is a separate company to Co-Operative Food, will continue to trade.
Local Councillor David May said: “It is a real blow to the town and for the staff at the Co-op and their families.
“Some of them have been working in the store for years and years and have made good friends and working relationships that they will now lose.
“I hope they are able to get jobs fairly quickly.”
He added: “From a larger perspective it is good that the town will be getting a new shop in Aldi.”
Montrose Councillor Bill Duff said he was “saddened at the news” and his thoughts were with those losing their jobs.