Wincanton's business community has suffered a “bitter blow” after 14 people lost their jobs.
Leading UK drinks wholesaler Waverley TBS, which has a depot off Saxon Way, went into administration on Thursday.
On Monday it was announced 14 workers in Wincanton had been made redundant as a result.
Another seven employees continue to work at the Wincanton depot – but face an uncertain future.
Colin Winder, mayor of Wincanton said: “I am worried about the future of Wincanton. It’s yet another blow for the town.
“I have spoken to the manager and South Somerset District Council, and have put the workers in touch with job centres, but it’s difficult.
“Attracting more businesses to the town is now more important than ever. We are gradually losing more and more jobs, and it is so disappointing.”
Daniel Butters and Bill Dawson of business advisory firm Deloitte were appointed as joint administrators of TBS Waverley last week. On Monday it was announced that the company had made 685 redundancies across the UK.
Mr Butters, joint administrator and restructuring services partner at Deloitte, said: “Regrettably, despite our continued efforts, we have been unable to identify a suitable buyer for the business.
“While we will continue to consider offers for the sale of the business as a going concern, we will now focus on realising value from the company’s assets. We will retain a core team of 97 employees to assist us in realising value from the company’s assets.
“We are extremely grateful to the staff and management for their support during this difficult time. We would also like to thank the Job Centre and Insolvency Service for their co-operation and help.”
John Smith, chairman of Wincanton Businesses Together, said: “This is something that Wincanton can ill afford at the moment.
“It’s a tragic set of circumstances for Wincanton. It is more jobs taken away from the local economy. We desperately need to find a way of bringing more jobs into the town to compensate.”