M&Co in Minehead is set to close along with all 170 of its UK stores. The news comes after the Scottish retailer appointed administrators last December.
The retailer, in Park Street, is Minehead's only surviving department store, but it is now scheduled to be shut by spring.
The Deputy Mayor of Minehead, Cllr Toni Bloomfield, said: "It is a loss for the High Street, especially for Park Street, as it is a big store.
"Another place that sells children's clothing has gone. Sadly, we lost Generations, and now we have lost M&Co."
Cllr Bloomfield said: " It is a shame to lose shops on the high street. I do not know how many they employed there, but there will be jobs lost."
Graham Sizer, chairman of Minehead Business Improvement District (BID) told the Free Press: "We thought the store had had a reprieve when new owners bought the brand, but as is so common these days, many national companies are thinking twice about taking on bricks and mortar.
"Minehead's store is the town's largest and it is difficult to imagine one single owner taking it on. Our thoughts are with those staff who will lose their jobs."
The Free Press asked Minehead residents what they thought of the upcoming closure.
Minehead resident Evonne Bibby said: "There are not many shops in Minehead. M&Co is very handy for us older women, I cannot work out the internet and that, so I have to get my children to do it. People need jobs around here, it is a shame for everybody."
Another resident Dawn Richards said: "I just think it is terrible. It is the only shop we have in this town and it is a brilliant store, the clothes are lovely and I think it is a disaster.
"I do not even do online, you see. There is quite a lot of old people here and we do not do online very much. I do not know what I am going to do."
One man who did not want to be named said: "I do not know how many people M&Co employ here but obviously it is not a high employment area so it is going to make an impact.
"I think Minehead needs more small shops. I think the days of the big department store perhaps have gone."
The M&Co brand was purchased by AK Retail Holdings but the deal did not include the physical stores leaving up to 1,900 jobs at risk of being lost.
Last December, the M&Co administrators, Teneo, said in a statement: "Like many retailers, the company has experienced a sharp rise in its input costs which has coincided with a decline in consumer confidence leading to an increased pressure on cash flows and trading losses."