PlaceMakers Rotorua is shutting up shop, leaving the future of 11 staff members up in the air.
The company told staff of its decision to close the Rotorua store this week, with the Te Ngae Rd store due to close at the end of October.
It blames site issues on the closure.
PlaceMakers general manager operations Gary Woodhouse said the decision to close the Rotorua store had not been made lightly.
"We've taken stock of the building and surrounds and made the decision to close owing to a number of issues with the site. We have been in negotiations with the landlord. However, we have been unable to come to an agreement regarding the completion of remedial work required to get the site up to a standard that works for us."