The owner of a prominent and long-standing Suffolk newsagents that closed last weekend has said he could not afford to pay his staff redundancy pay without risking the financial health of his other businesses.

Peter Cooney, who ran Baggott & Son in Aldeburgh, said he had lost more than £100,000 during the 14 years he had been operating the High Street business.

READ MORE: Aldeburgh: Baggott and Sons' loss 'like village shop going'

He said he could not afford to pay redundancy money to his five staff using funds from the two fish and chip shops he also runs in the seaside town.

The closure has sparked concern and dismay within the local community and in the national media about the loss of a shop considered a 'hub for the community' which sold newspapers, magazines and traditional seaside gifts.

At one time, the store sold wooden boats for sailing on the town's yacht pond and provided biscuits to visiting dogs.

READ MORE: Aldeburgh news

But Mr Cooney said turnover had been declining, particularly since the opening of new supermarkets in the town, which had taken trade from his shop.

He added the minimum wage had also risen, placing a further squeeze on finances, while the company that made the wooden boats closed down, resulting in the loss of a further revenue stream.

He said legally, it was the government's responsibility to pick up the redundancy payments for his staff.

"Why should I pay off the redundancy? I have already put enough money into the business. If I start taking money from the other businesses, it will affect them as well," Mr Cooney said.

READ MORE: Suffolk news

Questions have also been raised in the media about why a community consortium could not have been established to run Baggott & Son, but Mr Cooney said potential buyers had got cold feet because of the cost of the redundancy payments for staff, many of whom had worked there a long time.

"Baggott's still owes my company a six figure sum. On top of that, the business was offered to various people, but because of the redundancy problem, nobody would take it on," Mr Cooney added.