A sign on the door of 499 Princes St reads ‘‘closed for stock take''.
Bike Barn general manager Victor Gardiner, of Auckland, said the shop was shut because the lease was terminated.
‘‘We would love to have a presence in Dunedin and have a store there.
‘‘The timing of us being served our notice on the lease was a very unfortunate time of the year.
‘‘It's tough for us and obviously for the staff as well but we've had a good run in Dunedin and it's certainly an area we would still like to be involved in.''
The New Year closure was not because of background issues with Bike Barn, he said.
‘‘It's purely down to the landlord's lease agreement ... It's quite unfortunate but not a wider problem, purely a lease issue.''
Darling Realty owner Lincoln Darling said he owned the Princes St building and Bike Barn had leased it for three years and had two rights of renewal.
The first right of renewal for another three-year lease passed in November last year and by default the lease became month-to-month as solicitors negotiated the terms of a new lease.
Bike Barn offered to sign a month-to-month tenancy.
Mr Darling declined the offer because he wanted a long-term tenant on a three-year lease.‘‘They've decided to exit,'' Mr Darling said.
Bike Barn had given notice to vacate the building by January 15.
