The Beatties department store in Burton-on-Trent is to close at the end of September.
House of Fraser, which owns the store, told DIY Week that it had taken the decision following the failure of discussions over the renewal of its lease.
The closure of the store in Burton's Octagon Shopping Centre puts 65 jobs at risk. Thirty staff are employed by House of Fraser, whom it is hoping to place in other House of Fraser stores. The other 35 are staff of concession and brand partners.
House of Fraser said in a statement: "The Burton-on-Trent store lease ends in October 2012. Following a full review and discussions with the landlord, House of Fraser has decided that it will not be renewing the lease. Employees have been informed of the closure, and with regret the company has now entered into a period of consultation with affected staff.
"It is House of Fraser's intention to offer its staff members redeployment wherever possible and this is why the company has started the consultation period at the earliest opportunity. The store will cease to trade to the public at the end of September 2012."
The Beatties stores' history goes back to 1877, when the first was opened in Wolverhampton. House of Fraser acquired the chain in 2005. It then comprised 12 stores, but after the Burton branch closes only the Wolverhampton, Solihull, Aylesbury and Birkenhead will remain.