The "shattered" owners of the rescue-and-resell business, Charlie Bigg-Wither and Sandie Parkes, say 84 employees will lose their jobs between now and May 30.

The new contract to run the Mugga Lane and Mitchell recycling and re-selling depots has been won by the St Vincent de Paul Society Canberra/Goulburn.

The society says the depots will remain open during the transition period and existing staff of the Green Shed will be encouraged to re-apply for their jobs.

With the loss of the contract, the Green Shed as a business will be no more in Canberra.

Mr Bigg-Wither and Ms Parkes said they would now be forced to close their city op shops, The Green Shed Shop and The Green Shed Underground.

While the shops were not part of the contract, they were stocked by items sourced from the Mugga Lane and Mitchell depots.

With that stock no longer an option, and with Civic rent expensive, The Green Shed Shop and The Green Shed Underground had become unviable and were expected to close sometime between now and May 30.

The ACT government chose the St Vincent de Paul Society Canberra/Goulburn as the preferred tenderer for the Mitchell and Mugga Lane depots, in a recent procurement process.

ACT NoWaste executive waste manager Dr Margaret Kitchin said in a statement that "change can be challenging" and that she "appreciated the important services provided by Green Shed".

"However, this was a competitive process for a 'zero sum' contract, meaning the successful tenderer needed to demonstrate the greatest impact and support for the community, rather than being 'best value for money' and Vinnies were successful in demonstrating this." Dr Kitchin said.

"This does not take away from the contributions of The Green Shed, and again, we acknowledge their contributions over the past decade, including their charitable initiatives that have supported our community and will be working with them closely over the transition period."

The Green Shed owners were shocked but wished Vinnies no ill-will, concerned mostly for their own employees, many of whom came from vulnerable backgrounds and may not find another job.

The Green Shed has operated as a private business for 11 years, saving an average of 8000 tonnes of items form landfill a year.

It also raised $2 million for local charities, including by donating tonnes of Lego.

The Green Shed Underground supervisor April Widdup said staff were shocked when told by Mr Bigg-Wither on Wednesday that the shops would shut, collateral damage of the ACT government contract not being renewed.

"Everyone cried. Everyone had to go out the back and cry," she said.

Ms Widdup said The Green Shed owners were one of the few businesses to pay workers with a disability "a proper wage".

"Today was really, really rough for them because a lot of them have been really stressed about being able to get jobs," she said.

Rosemary Cosentini, 53, is a worker with a disability who has been an employee at The Green Shed Underground for nearly three years, working there two days a week.

"It's very hard for me to get paid work because of my disability," she said.

"I've been treated very well here."

The decision not to renew The Green Shed's contract only came to light on Wednesday when a devastated Mr Bigg-Wither posted about it on social media.

He said in a letter from the director of ACT Procurement, he had been told Vinnies was "assessed as providing the Territory with a response that met all the specified criteria to the greatest degree as well as the best overall value for money".

Mr Bigg-Wither said he understood there was no contractual obligation for Vinnies to employ the existing staff.

"I have just had to inform the 84 staff that they will be unemployed come the 30^th of May."

Mr Bigg-Wither and Ms Parkes now plan to retire but say they will help their staff to get new jobs.

A spokesman for the St Vincent de Paul Society Canberra/Goulburn said it would officially take over the Mugga Lane and Mitchell facilities from May 1.

There would be a transition period with the Green Shed owners before it took over the facilities officially.

The spokesman said staff employed by the Green Shed would have an opportunity to apply for a job at St Vincent de Paul and every effort would be made for them to "join the Vinnies family".

He said Vinnies also intended to keep the business model in terms of helping other charities through the sale of items diverted from landfill as well as help to financial Vinnies social programs, helping vulnerable members of the community.

He said the depots at Mugga Lane and Mitchell should remain operating throughout the transition period.

Meegan Ward, of Gungahlin, shops at The Green Shed Shop in Civic every day and was "heartbroken" to hear of its impending closure.

"It's much-loved," she said. "It's going to be felt in the community in a very big way, bigger than they [the government] thinks."

Isla Nichol, 20, who is completing at arts degree at the Australian National University, had been a casual worker at The Green Shed Underground for a year.

She was devastated the shop would be closing.

"The people who work here are like family," she said.

"We are all passionate about the cause - preventing as much waste as possible. I'm very passionate about anti-fast fashion. So, we're all binded together. It's just a workplace like no other. I absolutely love it here and everyone is so devastated and sad."

Workers at the Mugga Lane reuseable facility were also bereft, saying they did not have any confirmation their jobs were safe or would be transferred to Vinnies.

"Nobody's talked to us. Nobody's told us anything. Charlie and Sandie have told us as much as they can," a worker said.

"There've been staff that have been working here for 30 years and love it and care for it. We recycle everything, right down to scraps of fabric, they go to Koomarri. Almost nothing here goes to waste. ".

The worker said The Green Shed had been a great employer who paid well and gave Christmas bonuses. She said the work was often hard and staff were sometimes abused by members of the public when told some items were not suitable for donation.

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She praised Mr Bigg-Wither and Ms Parkes for caring for their staff and supporting them when things got tough.

"I know the owners. They're local community members and they care about us. Like, really caring for us," she said.

Dr Kitchin said that Vinnies had supported the ACT and region since 1924 and brought a wealth of experience in the reusables sector in addition to well-established support programs which would further support those in our community who need the greatest support.

"The majority of Vinnies' services are made possible by the support of the Canberra community like their emergency assistance relief, the Night Patrol and other programs for people in need. Having Vinnies manage the reuse facilities will enable them to do even more for those needing a hand up. It will also provide opportunities for community and educational upcycling and other activities, as well as to continue to support other local charities," she said.

"Vinnies will also reduce material sent to landfill with an ambitious target of reducing this by 10 to 30 per cent over the next four years, supporting our circular economy. Further to this, Vinnies will have a dedicated education space made available for the delivery of workshops, repair activities and structured education."