It has been confirmed that Flannagan's Furniture has gone in to liquidation.
Staff were informed of the new on Thursday, HIghland Radio News contact management on Thursday and Friday to get confirmation of the shock development, however at that time no comment was given.
The company recently extended its number of stores to 5 and increase its staff number too.
Inishowen Councillor Jack Murray has described the news as a 'crushing blow' for the community in Inishowen.
Speaking after visiting the store and meeting with a number of staff members, Cllr Murray said; "Flannagan's has been an institution in Buncrana for decades; people are in shock at its closure.
"The store is like a wake today; people don't know what to say. I spoke to a number of members of staff who are worried about their future and particularly about how they will pay for Christmas in the short term.
"Such an amount of job losses is a crushing blow for Inishowen."