Co-owner Paul Clowry confirmed on Wednesday that the long-running Cornucopia Bakery shut its doors until further notice, blaming Braddon's hipster expansion for cutting their Saturday business in half.

"I think the bakery has been here for 30 years and my wife has been running it for 20 years," he said, before cracking open the champagne on the rainy Christmas Eve.

"While the rest of Braddon has been having a big boom we have had a fairly significant downturn over the past few years.

He said while it had been great to see the old Braddon carparks transform to "beautiful alfresco areas" with "a lovely village feel", the area's kale purveyors and trendy food vans had taken away many of his customers.

Developers also lodged a development application with the ACT Planning and Land Authority for the demolition of their building at 40 Mort Street earlier in December.

Laid out in the plans, designed by Cox Architecture, is a new seven-storey mixed commercial and residential development.

But Mr Clowry insists they were not pushed.

"We knew that it was coming and we knew we were going to have to move, but they are not kicking us out, we are leaving of our own accord," he said.

"We usually have a least a couple of weeks off in January, but with the way things are financially in the business at the moment we decided we would close the doors and take stock of where we are."

Trilby Rippon took over from Cornucopia's original owner Leanne Gray in 1995.

Mr Clowry said the couple were happy to see the back of a stressful 2014, which saw him picking up the morning shift and Ms Rippon, the pastry chef, working nights.

Mr Clowry said many of his customers were devastated, furiously signing a contact book to find out whether they would re-open.

"We have had a lot of love, asking where we are going and what we are doing, a lot of our customers are very regular customers, who come in three, four or five times a week.

"But it's hard to give them a direct answer because we don't know, we just need some time to decide what to do next."

Mr Clowry was not bitter and understood the allure of the area's renaissance, saying the transformation was "very cool".

"If it was me I'd go here one day, there the next day," he said.