Ninety one jobs will be lost in St Columb Major, Cornwall, when bookseller Borders closes its delivery centre.
The company said it would be delivering to shops directly from the publishers in future.
The firm said the depot at the Trekenning Industrial Estate will close at the end of August.
The depot opened in 2002 with £3.5m from the South West Regional Development Agency and Objective One, the EU fund for deprived areas.
Borders UK sells books and magazines along with specialist music DVDs at 42 large stores around the country which also include coffee shops.
The depot brings together deliveries from publishers and wholesalers and then distributes the goods to the rest of the stores.
After a review of its supply chains, Borders says it is better off dealing with the publishers direct because it will be cheaper, it will be able to improve its stock range and delivery times and it will be more environmentally friendly.
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