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
Kerrie brings you Saturday night's weather forecast for Cumbria and the South of Scotland
Gusty winds with sunshine and showers. A cooler night ahead
A look ahead at the weekend forecast for the Border region.