The National Museum of Costume based at Shambellie House, near Dumfries, will not re-open for business in the spring.
The closure of the museum comes as a result of the economic recession and falling visitor numbers.
The museum attracted around 10,000 visitors per year, and 5,000 to the shop, cafe and grounds.
The house was opened as a museum in 1982, and is owned by the Scottish Government.
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