Julie Nichols and Rachel Evagelou, the women behind the hugely successful Handmade Market and Shop Handmade store, say they gave their all to make The Local Larder work at the Canberra Centre but liaising with the centre owner, Queensland Investment Corporation, had got them nowhere.

The Local Larder was due to open in August last year as a local food, wine and tourism hub opposite Glebe Park, injecting life into the otherwise moribund eastern end of the Canberra Centre but delays caused by issues "beyond their control" meant that date came and went, forcing them to miss the critical Christmas trading period.

All that remained - and all that still remains today - was their proposed new home in the old Rivers Store boarded up, with its facade ripped down for renovation but no sign of any action on the site.

The women were distressed at the way in which "the whole process was treated by QIC". Many of their emails and requests for information went unanswered and they were given different managers to deal with.

That was despite them being approached by QIC to make the move from their previous location in City Walk to the Canberra Centre.

"It was never that we bit off more than we could chew. We are resourceful and competent women and we knew what needed to happen. What happened was we bit off what we couldn't control," Ms Nichols said.

Despite a number of attempts to speed up the process, the women had to come to the heartbreaking realisation at the beginning of this year that they could not afford to remain in a holding pattern while their own expenses continued to be accrued. They had to walk away from the project.

"We would like people to know that we worked with QIC in good faith, we gave it our all, " Ms Nichols said.

"But we got to a point in December when our own builder told us it was unlikely to be finished by June and our accountant told us that we should not invest any more of our savings in the project."

QIC was approached for comment and a one-line response was given from a spokesperson for the Canberra Centre.

"We were pleased to work with The Local Larder to come to Canberra Centre but unfortunately they elected not to proceed," the statement read.

When asked for more detail, the spokesperson responded: "Out of respect for all our tenants we don't disclose confidential discussions between them and us".

Ms Evagelou said the last few months had been crushing on them both, saying The Local Larder had been their dream.

"Certainly the hardest part of all of this is now letting people know that The Local Larder concept store will not be going ahead. We have always received an enormous amount of community support and we know this will come as a surprise and disappointment to many people," she said.

"We had to make the call. It has been devastating on us, and our families."

The women say it is not an option any time soon to open The Local Larder in a different location, given the investment required and the need to recoup debt from the Canberra Centre experience.

Ms Nichols will focus on running the Handmade Market, the next of which is on this weekend. Ms Evagelou will manage The Local Larder as its existing online store.

Handmade Canberra in its last full financial year injected $11 million into the local economy, through sales from the shop and market, acting as an agent for scores of small businesses who sell their wares through the avenues. That figure also includes $7 million in tourism revenue, calculated from people coming to Canberra to attend the market and then staying.

The business began as markets for local handmade goods in 2008 and progressed to the Handmade Canberra store opening in City Walk in 2010.

An independent survey in 2014 found the Handmade Market was one of Canberrans' most-loved events, up there with long-time favourites such as Floriade, Summernats and the National Folk Festival,

Handmade Canberra also won two Canberra Tourism Awards and was the winner in 2013 of the Telstra Business Australian Capital Territory Start-Up Award.

The two women have sold everything from coffee mugs with Canberra bus shelters on them, to local artworks, map tea-towels and lollies proudly proclaiming that "Canberra doesn't suck".

"We will continue our work in being the voice for independent makers in the region. We are still proudly and fiercely local and will continue to work on our respective businesses and together to represent all our incredible designers and makers," Ms Nichols said.

*The Local Larder Online is at thelocallarderonline.com.au

* The Handmade Market is on Saturday and Sunday 10am to 4pm at Exhibition Park in Canberra.