The Mattressman store at The Link retail park in Westwood will shut by July 2 as one of 14 closures across the country.
The bed and bedrom furniture business has entered a company voluntary arrangement which will mean shops in East Anglia and the Midlands remain safe but those in other areas of the country will close down with the loss of some 130 jobs nationwide.
The restructuring agreement will mean the company can continue trading but on a smaller scale.
The process is being overseen by insolvency specialists McTear Williams and Wood.
The company will continue to trade and has said all outstanding orders should be fulfilled but where it is not possible customers will receive their money back.
The firm said the decision has been made due to a slump in sales.
A spokesman added: “Having battled struggling sales in the current retail climate the company’s recovery plan includes reducing its store portfolio from 25 to 11.
“Mattressman has encountered numerous issues in the last 12 months culminating in a shock 15% like for like drop in sales in April and May which turned a profit of £1.1m in 2017 to a loss of £2.6m in the financial year ended March 21,2018.
“Mattressman thanks every employee for their service and dedication before and during these difficult times.”