As branch secretary Ian Temple explained, the charity used to rent out the premises to its social club which had recently become unable to cover the costs of the building and purchase stock due to falling membership numbers and a lack of footfall.
Over the years, the state of the building had also deteriorated and in order to keep it open, maintenance works as well as works to make it disabled-friendly would need to be carried out.
Ian said: "We as a branch are unable to use any of our funds from the Poppy Appeal for the building. The only option would be to fundraise to pay for all the alterations but that's not what the vast majority of the branch are involved in. They want to raise funds for the Poppy Appeal."
He added: "If someone came up with a business plan they could open it up again but I don't think it's going to happen because of the state of the building."
The charity, which predominantly used the premises in the three months leading up to Remembrance, is now looking for a new building to operate from.
It has so far received offers from the Anglers Club, the Market Hall and Harbour Bar.
All the plaques and memorabilia loaned to the Legion which are currently in the bar will be returned to their owners.