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
Money is being raised for two west Cumbrian children with life changing medical conditions.
A Carlisle charity that takes in unwanted and lost animals has been given almost £15,000 from the Postcode Local Trust.
Kerrie Gosney brings you Sunday night's forecast