The company issued a statement stating its demise is due to falling prices for aluminum and plastic and rising operational costs.
Some environmental organizations including GreenAction are concerned the shut down could have ripple effects for poor people and the planet.
"We might see ourselves increasing more uses of incinerators. We need to rethink more about our landfills because less is being recycled than before," said Sheridan Enomoto, of GreenAction.
Some groups are urging Sacramento to require all grocery store chains to pick up the slack and start redeeming recycled cans and bottles.
One San Francisco man says he's been recycling bottles and cans for money at RePlanet's Bayshore Boulevard site for more than 10 years.