The Baxters cafe and deli in Selkirk is due to close in February with losses of over 20 jobs.
The company say their main distributers for their retail outlets is selling up and they have been unable to find a replacement.
The news has been described as a huge blow for the town.
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Cloudy with outbreaks of rain, heaviest in west
Emma Jesson brings you Sunday night's forecast
The Met Office have issued a yellow "Be Aware" warning of heavy rain for the region which is valid from 3pm Sunday until 3pm Monday