Kitimat Mayor Joanne Monaghan says people are having a hard time selling their houses. (CBC)The Eurocan paper mill in Kitimat, B.C., shut down production on Sunday after more than 40 years in operation.

West Fraser Timber announced in October the mill, the town's second-largest employer, was losing money and that the last day of operation would be Jan. 31.

The mill's closure leaves 535 people without work, including long-time employee Danny Viveiros.

"It's beyond our control and we just have to sort of move on," he said. "The maintenance people are starting to look for jobs but, all in all, they're just sort of wondering how they're going to move on."

Most of the employees have not been able to find new jobs.

Kitimat Mayor Joanne Monaghan said the entire town is already suffering — many of those losing their jobs have been unable to sell their homes.

"With a stroke of a pen, West Fraser put our house prices down $350 million," she said.

"With a stroke of a pen they will probably take one school away from us and they could even … take a lot of the services away from our hospital."

Pastor Shawn Allen said the effects are already being felt in his church.

"Now that we're here, the shock isn't there anymore and people are beginning the grieving process. They're starting to mourn," he said.

Former employee Danny Viveiros says most workers are still trying to figure out how to move on. (CBC)"For example, in our own church the Sunday after next, we'll say goodbye to the first four families from our church and there will probably be six or seven more."

The Olympic torch rolls into Kitimat on Monday — one day after the mill's closure and the irony isn't lost on local residents.

"It's really not the time and there really has not been enough support for people here in this community," one resident told CBC News.

Another said the torch's arrival is "not going to make people very happy."

With files from The Canadian Press