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.
More top news
A look ahead at the forecast for the Border region - and there's more SNOW on the way
A new route has been opened for walkers, cyclists and horses alongside the A591 between Grasmere and Keswick, which was closed for months.
New poll suggests Tories could overtake Labour to become main opposition party