The Co-op cafe which operates in the Lerwick supermarket and is run by the Sumburgh Hotel is set to close. It will be replaced by a clothing outlet.
The Co-operative today confirmed it was in talks with the retailer Peacocks to take over the corner of the store which currently houses the small eatery.
Lerwick Community Council member Damien Ristori told fellow members at the town hall on Monday night that rumours were running high the cafe may soon be no more.
A spokesman for The Co-operative said: “We can confirm that we are currently in discussions with a clothes retailer to open within our food store in Holmsgarth Road, Lerwick.
“It will be in an area of the store currently occupied by an independently-run cafe, which is to close.”