Buffer Bear Neighbourhood Nursery in Moulsecoomb Children's Centre inBrighton will close on 19 October.
The 43-place nursery was originally opened as part of the NeighbourhoodNurseries Initiative (NNI) in 2003.
Parents and staff were given a month's notice after the NNI funding cameto an end this summer. Brighton and Hove City Council stepped in toprovide temporary funding, as the nursery's main provision consists offunded places and respite care for children with special needs.
Kay Turner, managing director of Buffer Bear, said, 'It's very sad forstaff and parents and everyone involved. The reason for closure was therelatively low level of demand for full daycare places from workingparents and those able to pay the fees.'
Lack of sustainability led to the closure of another Buffer Bearneighbourhood nursery in Brighton 18 months ago.
Ms Turner added, 'Our Neighbourhood Nurseries are still working well inother areas. It's very dependent on the local situation.
'I would want to emphasise the need for long-term strategic building. Weneed to ensure that resources are used fully to build on existingprovision.'
A spokesman for Brighton and Hove Council said, 'The number of nurseriesin the city has increased significantly since Buffer Bear opened, andthis has increased parental choice.
'In the longer term, the clear intention is to deliver pre-schoolfacilities at the children's centre, but we need to spend some timelooking at how best to do this in a sustainable way.'
The council is currently attempting to arrange interim provision withMoulsecoomb Neighbourhood Trust.
