Charlie Sinn has worked at HiCity Garden Maintenance in Melbourne's north-east for three decades, so losing his job is like losing his family.

Key points: The not-for-profit in Melbourne's north-east is closing, leaving 90 workers with a disability out of a job

The not-for-profit in Melbourne's north-east is closing, leaving 90 workers with a disability out of a job The local council says it's "shell-shocked" after buying into the site on the understanding staff would keep their jobs

The local council says it's "shell-shocked" after buying into the site on the understanding staff would keep their jobs The Bedford Group has defended winding down Victorian operations, saying it will help workers find new jobs

He is one of 90 workers with a disability who will be made redundant when the not-for-profit operation at Heidelberg West closes.

The disability service provider, Bedford Group, said the site was no longer viable and said it was committed to helping staff find new jobs.

"I'm upset, I'm sad," Mr Sinn, who lives with Down syndrome, told the ABC.

Some workers' parents are outraged at the move and have accused Bedford of "asset-stripping" the facility.

'They're a family'

Charlie Sinn's father, Andrew Sinn, said the decision to close on December 13 had hit his son hard.

"Charlie's work is his life, he gets up in the morning, he gets a taxi, goes to work, that's what he likes to do, that's what he's always done for 30-something years," he said.

"They're all his friends, they're a community, they're a family."

"Charlie works in the packaging department where he has a machine that seals cellophane packets of chocolate, where he puts them into a box for sale. He has a production line.

"The whole benefit of going to work is psychologically very important to him.

Andrew Sinn says Charlie's looming job loss has hit his son hard. ( ABC News: Peter Lusted )

"I just think it's a classic case of an asset-stripping exercise by a corporate raider but they're supposed to be a not-for-profit organisation," Mr Sinn said.

"They've walked in and sold our asset, taken the money and it's gone across to South Australia into their consolidated revenue, it's not being used to find another site so that these people can remain in their jobs."

Council left 'shell shocked'

The announcement to close the business shocked Banyule Council, which bought part of the site from the owners in July for $4 million, under the proviso Bedford would relocate the business and staff could keep their jobs.

Banyule Mayor, Wayne Phillips, said the council had been under the impression the company was expanding.

"They said we will use the money that you pay us to purchase the property to relocate somewhere in the northern suburbs of Melbourne and everyone will be guaranteed an opportunity for reemployment and or rehousing," said Cr Phillips.

"We believe we paid them a very good market value price, or slightly above, on the basis that they were going to use that money to relocate elsewhere and we knew that every extra dollar that they got would only benefit those that were either being employed or housed by the HiCity Group."

Councillor Phillips said despite having bought the land, the council allowed the company to remain on the site for two years.

"They also asked us would we be able to give them the opportunity of staying there while they relocated and we agreed to that … giving them a short-term lease on a couple of years for what we call a peppercorn rent, which was a dollar a year," he said.

"That lease was to October 2020, so there's still another year or so to run on that lease.

"We were assured that the services would continue so we were a bit shell-shocked, you know, when we heard the news."

Disability service provider Bedford Group said the HiCity site was no longer viable. ( ABC News: Kyle Harley )

Bedford blames 'tough economic times'

Adelaide-based Bedford merged with Oriel Services in December 2017 to take control of HiCity Garden Maintenance, but chief executive Maggie Dowling said the company was already struggling financially.

"We thought that there was room for growth in Victoria, but since then, you know the tough economic times that are being felt across Australia are public knowledge," she said.

"The business model we operate is really two large commercial businesses and that ended up not being viable at this time."

Ms Dowling said the company tried to relocate but it wasn't viable.

"It was part of the council's understanding that we'd be looking for a new site within a 10-kilometre radius of the existing site that is very close to Melbourne CBD, which is a very expensive area," she said.

"To support a disability organisation in tough commercial times, at those sort of lease costs, we now deem it not sustainable.

"At least with the $4 million we have been able to continue for those people to have employment while we investigated really thoroughly whether it's going to be sustainable to keep the Victorian operations going."

Bedford rejected allegations they were "asset-stripping" the facility.

Ms Dowling said the charity's constitution required it to hand over the balance of assets to a similar not-for-profit with a common mission.

"Once HiCity has closed, our board will make the decision to distribute that balance of assets to those not-for-profits and organisations that our HiCity clients have chosen to work for and who will support them with new services and programs," she said.

She said staff would receive all entitlements and Bedford held an expo this week to find workers new jobs.