M Corson Bakers has confirmed it will "reluctantly" shut all four of its stores in Dumfries and Galloway.
It has two outlets in Castle Douglas as well as shops in Kirkcubright and Dalbeattie.
34 employees will be affected.
The award-winning family bakery dates back almost 140 years.
The company was put up for sale in 2008 and after 10 years without finding a suitable buyer, the decision has been taken to close.
A consultation is to be undertaken with staff over the closure.
The firm is well-regarded by locals for its rolls, bread and fresh cream cakes. It has also received national recognition in recent years for the quality of its shortbread, taking silver at this year’s Scottish Baker of the Year competition.