Furniture company ScS will close all of its concessions at embattled department store House of Fraser by the end of January after it was taken over by Sports Direct founder Mike Ashley.
The company said its orders through House of Fraser had more than halved in the twelve weeks ending 20 October.
Ashley bought the department store chain in August for £90m and said he would transform the struggling company into “the Harrods of the high street”.
But ScS said that since the change in ownership, the partnership was no longer beneficial to the sofa firm.
Chief executive David Knight said: “I would like to take this opportunity to thank all of our colleagues who have worked in our House of Fraser concessions over the past few years for their dedication and hard work.
“However, given developments in House of Fraser over the last few months, it has become clear that the partnership was no longer beneficial to ScS.”
ScS Group said it was looking to re-deploy affected employees elsewhere in the firm where possible.