The childcare sector in Dalbeattie has been dealt a blow with news that Birchvale Nursery is to fold.
The centre, which has been operating for 10 years, employs two full-time and four part-time staff.
It has 70 children aged between five months and ten years on its books.
A closure date for the Copland Terrace facility has not yet been set.
Manager Anne Clark said: “That is still to be decided. We are working as closely as we can with families and the local authority.
“We are also working with the school nursery to minimise disruption as much as possible.”
She added: “I would have expected an angry response about this but we have been overwhelmed by how many lovely messages we have received.”
Mrs Clark told the News she is calling it a day on “financial and operational” grounds.
Lower local authority payments per child compared with council-run nurseries are partly to blame, she said.
Mrs Clark said: “The council is both our major source of income and a competitor.
“The crux of the matter is that we are not paid equitably enough to pay more or less what the council pays its staff.
“This has been a ticking financial time-bomb and our staff have their own interests to consider.”
She added: “The government has refused to set a blanket rate for what providers should be paid.
“That gives the council autonomy. We are then given a rate but it is not a level playing field.”
Depute council leader Rob Davidson expressed concern at the closure.
He said: “I want to understand what has happened here because there will be a lot of families who rely on the care Birchvale provides.
“Having alternative or successor provision to make sure families have the support and care they need is absolutley imperative.”
A council spokesman said: “We’re aware of the situation relating to Birchvale Nursery in Dalbeattie and are, of course, disappointed to hear that it has chosen to close.
“Our primary concern is the wellbeing of children and their parents/carers.
He added that the council had commissioned an independent audit of the rates paid to nurseries which concluded that they were appropriate.
