Stallholders at Glasgow's Paddy's Market have been told it will officially shut in the middle of May.

The 27 traders at the 200-year-old market in Saltmarket have received letters telling them the market will close on May 15, when the £100,000-a-year lease is taken over by Glasgow City Council.

The council plans to close all of Shipbank Lane and part of the Briggait while the area is redeveloped, though "appropriate" traders will be offered spaces in the unaffected section of the Briggait.

It is intended to replace Paddy's with something resembling the famous Camden Market in London. But traders say they are devastated at being given notice to quit.

Hazel McGeachin, who runs a grocery stall, said she had traded at the market for around 20 years. "We are absolutely gutted that the council is closing a vibrant business and putting 80 people out of work. The customers are also devastated, especially the older ones because coming into Paddy's every day is a lifeline for them," she added.

"They come in for the company and the goods because they will not find anything cheaper in Glasgow."

Ms McGeachin insisted moving to the arches at the Briggait was not an option, as there will not be enough space to accommodate all the Paddy's stallholders.

She said: "Paddy's Market is a collective body, not just individual people. It is 80 people who want to work together, fight together and stay together. These are people who have grown up together, been to each other's christenings, parents' funerals and weddings.

"It is not just a job but a whole community and the council has devastated the whole community.

"We would be more than willing to stay and work with the council but the council is not giving us a chance to work with them."

Stallholder Margaret McKenna added: "The council has given us forms to fill out for other buildings but that is no use - the Briggait is not the Briggait without everyone being there.

"We are one big family and what is happening is such a shame and I am so down and depressed about it."

A council spokesman said: "The development of this site is seen as key to the continuing regeneration of the Merchant City, where long-term investment has delivered a significant improvement in the public environment, increased property investment and steady growth in local investment."

The council said policing costs for the area were £277,000 in 2006/07. In the general area in 2005/06 there were 314 drug possession cases, 268 breaches of the peace, 29 robberies, 96 thefts, 89 assaults, 46 cases of police assault and resisting arrest and one attempted murder.