The national company had been struggling with profits and the situation worsened with the Covid-19 crisis.
Poundstrecher announced in June that it could be shutting around 250 stores as it attempted to negotiate rent reductions.
The large Taunton premises, next to The Bridge and beside the River Tone, ceased trading as of Saturday.
A notice in the window informs customers that its sister shop, Bargain Buys remains open in the county town’s North Street.
The Poundstretcher store underwent a £100,000-plus internal and external makeover in 2017.
The leaking roof was repaired, new equipment installed inside, with two aisles removed to make the floorspace more open and aisles wider for a better shopping experience.
There was also a new till system in a better location, a new CCTV system, new lighting and new checkouts.