Hotel owner Kathleen Casey said she would be forced to close the hotel after a five-month search for a new owner.

She said the stress of owning and running the hotel had taken its toll on her health.

"There is only me here and it is too much hard work for me and it is difficult money-wise as well," she said.

"It is a shame that it is going to have to close but I have done my best.

"I think it is very important to have a pub in Brim - the pub is like the town centre and people do like to call in after work."

Mrs Casey said a Queenland couple had wanted to buy the hotel but the offer fell through on Wednesday.

"I was so excited when I thought it had been sold but all they have done is muck me about for four months," she said.

"I was virtually giving it away - I wasn't going to make a cent off it but I didn't care because all I wanted was my health.

"If someone wants to buy it - as long as it is done and dusted by the 10th - then fine, but I can't keep going any longer."

Brim-Kellalac-Sheep Hills Cricket Club president David Holland said it was disappointing to see the small town lose another service.

"We have used the hotel for our annual general meeting but we have also supported the hotel with meals after training on Thursday nights during the cricket season," he said.

"We felt strongly that we wanted to support the pub while it was there and allow it to continue to function.

"It is disappointing but it is a reflection of the reality small businesses face in rural areas where there are fewer people."

Yarriambiack Mayor Kylie Zanker said while it was disappointing to see the hotel close, it wasn't a sign that Brim was 'dying'.

"Obviously no-one likes to see any business close down -  we want to grow and strengthen the businesses in our area," she said.

"I do think this is just an isolated case -  it is easy to point fingers and say it is a smaller town struggling but if you walk down larger areas in Horsham or Warrnambool there are also businesses that close.

"The impact seems greater in smaller communities because there is a smaller base of businesses - when one closes down and there are only eight, for example, it leaves a bigger hole to fill."