Zara Khan, chair of the BYC, said the charity had faced “financial challenges” which have led to insolvency.
This was cemented by its partner The Body Shop going into administration earlier this year.
The Scottish Youth Parliament is among organisations to share its shock over the closure of the BYC which was initially set up by the Foreign Office in 1948 but became an independent charity in 1963.
The BYC has run the UK Youth Parliament through a grant from the Department for Culture, Media and Sport for the last few years.
Chair of the Scottish Youth Parliament, Mollie McGoran MSYP, said: "The closure of our friends and partners at the BYC is deeply sad news and on behalf of SYP, our thoughts are particularly with the board, staff and young people involved.
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