The Clutha Mayor says the closure of the Balclutha branch of AMI is "frustrating".
IAG Otago and Southland regional manager Garry Smith confirmed the Balclutha branch of AMI in Clyde St will close on Friday, October 13.
Mr Smith said legislation brought into effect earlier in the year meant all national businesses and organisations were required to assess their properties for earthquake risk.
IAG New Zealand, AMI’s parent company, reviewed the Balclutha branch’s long-term viability due to it no longer meeting the company’s minimum earthquake rating.
Mr Smith said the company looked at several options including relocating the branch to a different site but no suitable alternative was found.
"As a result, we’ve decided we should close the Balclutha branch," Mr Smith said.
He thanked its Balclutha customers for 42 years of support.
A spokeswoman confirmed that the two staff affected by the closure would be relocated to Mosgiel.
Mr Smith said the company had let customers in the area know how to do business online, by phone or at the Mosgiel branch.
Clutha Mayor Bryan Cadogan said the closure was frustrating given other businesses still operated "perfectly" from the same building .
"Once again" earthquake requirements were the catalyst for the closure of a business, he said.
PGG Wrightson closed both its Lawrence and Owaka branches in May due to both buildings being deemed earthquake-prone. They later reopened once alternative sites were found. Mr Cadogan said the Clutha District was beginning to grow and was frustrated businesses were leaving.
His thoughts were with the workers affected by the closure.
The branch will remain open until October 13.
