Seagars at Oxford closed on Friday.
A sign on the door reads: "Winslow Trading Company Ltd, operator of Seagar Cafe, Cook School, Kitchen Store and B&B has been placed in liquidation."
"It's really gutting. Another post-earthquake story," an emotional Ms Seagar said today.
Local suppliers were not owed any money, she said.
After the 2010 and 2011 earthquakes, business fell by 75 per cent "overnight".
Canterbury also lost around 1.5 million tourists, which the cafe and cook school relied heavily on.
Staff were kept on, on full pay, while the Seagars took in no income and battled to survive.
"We did the decent thing, but in hindsight we should have fired everybody and cut back, but we didn't and we are paying the price of that now," Ms Seagar said.
"We've had a great 10 years, a really thriving business, and then the earthquakes came.
"The Inland Revenue is not patient enough post-earthquake and they put us in receivership.
"We've actually been quite successful in trading and busy but not just enough to pay them.
"It's just one of those stories, and I'm sure there are hundreds of little businesses like us. People have lots worse, don't they, lots worse."
In February, Seagar revealed the business was on the market.
"There have been a lot of rumours out there but yes, there is truth in this one -- Seagars at Oxford... is for sale," she wrote on her website at the time.
"I am hoping we find the right new owner who will carry on and develop the extraordinary possibilities of this venture.
"Oxford is a fabulous town with all the amenities within an easy drive of Christchurch with all its changes, growth and excitement post-quakes.
"A couple of new opportunities have arisen for Ross and I and and a fast approaching significant birthday have had us thinking about What we'd like to do for the next decade."
Today, she said that she and husband Ross, who is heavily involved in the local fire brigade, were committed to the Oxford area.
"We'll just hunker down and decide on what to do next," said Ms Seagar, who was made a Member of the New Zealand Order of Merit in the New Year's honours list for her work with Hospice New Zealand.
"I still have great faith in Canterbury, it's just a bit of a bugger really. But we'll come back."
By Kurt Bayer of NZME. News Service
