Based on Market Street, The Market Place’s NHS contract had accounted for 80% of its funding.
When it ended last year, the charity tried to continue with its remaining revenue streams but has now been forced to fold.
Counsellor Isobel Baker, who has worked at the service for 26 years, said staff were “absolutely devastated” by its closure.
“Young people are telling us they don’t know where to turn to,” she said.
“They’re having to manage long-standing and complex difficulties on their own.”
She added: “They’re being signposted to other services that provide shorter-term interventions, and therefore they’re left wondering where to turn to next.”
A spokesperson for the ICB said the range of other available support services included “early intervention, counselling and other therapeutic interventions, crisis support, and specialist services for issues such as anxiety, depression, and eating disorders”.
“Support is accessible through schools, community organisations, NHS partners, helplines, and digital platforms,” they added.