Wheels Cycles has laid off three employees and is closing down its Front Street location because of a “substantial” drop off in business.One of the staff members who was let go had worked for Wheels for 16 years, and was past retirement age. The other two were newer employees.A spokesman for the company told us the cycle livery and bike sales business had fallen victim to the poor economy, downturn in tourism and lack of a cruise ship in Hamilton.He said the 117 Front Street store was being closed, and Wheels would be combining the retail operations at its 13 Dundonald Street location.He said the company would continue to employee 15 people.Wheels, a sister company to the MarketPlace Supermarkets, took over the Front Street store when it acquired Astwood Cycles more than a decade ago.The spokesman said the Grotto Bay Hotel cycle rental location would continue to operate for now, but the company was “leaving its options open”.“It was a business decision,” the spokesman said of the lay-offs and store closure. “We can’t continue taking losses. We decided it would be more efficient to operate the companies together in one location.“There’s no cruise ship, tourism is down, so cycle rentals are down - substantially, and overall sales of new bikes are down because of the economy and loss of work permits, and there is a lot more competition.”He added he believes the congestion on the Island’s roads has also put many tourists and cruise passengers off renting cycles.