The closure of Mills on Spring Garden Road should spark action from the municipal government, a business leader said Thursday.

The Halifax department store closed Thursday after nearly a century in business.

"This is a sad day for the people who work at Mills, as well as their families, the people who shop at Mills and the people who sell to Mills," said co-owners Lisa Gallivan and Candace Thomas in a release. "Clearly, there will be difficult days and weeks ahead through the receivership process."

Juanita Spencer, the executive director of the Spring Garden Area Business Association, said she didn't know what spelled the end for Mills, but she does know what worries a lot of her members.

"It's hopefully a wake-up call for the city to really look at what's going on in the area, take a look at the tax structure that's here — that's certainly a big issue for our members — and also look at the regulatory burden they're facing," she said.

She said the street lost another veteran store, Maritime Frame-it, in January after 50 years.

"A lot of people come to Spring Garden for Mills, so it's a very sad day for all of Halifax," she said.

According to the owners, there was no one issue but "ultimately there just weren't enough sales to customers to continue to stay open."

The company was placed in receivership on June 30 at the end of the business day. Twenty employees of the store were told of its closure Thursday morning.

"Understandably, staff members are sad and upset to be learning the news. Some were surprised, while others probably weren't," said the owners in an email to CBC News.

Thomas and Gallivan bought the store in 2012. The women said despite today's announcement, they do believe the business still has potential with the right kind of investors.

Peter Wedlake of Grant Thornton was named the receiver.