Rental costs and competition from B&Q has forced Homebase in Kirkcaldy, Fife, to call it a day, with the store lease reportedly transferring to The Range.
The closure of the store in the Fife Central Retail Park places 30 jobs at risk, but the opening of The Range will potentially save some of the positions.
In a statement Homebase said: "Following a period of consultation with colleagues, we have announced that the Homebase store in Kirkcaldy will close, with a date yet to be confirmed.
"The store lease is transferring to retailer the Range subject to planning and landlord consents, who will invite all Homebase Kirkcaldy colleagues for an interview to work in their new store. Where possible we will also look for opportunities for colleagues at nearby Homebase and Argos stores."
No date has been given for the closure.
A spokesman for the The Range declined to comment on whether the retailer would be opening a store in Kirkcaldy.
However, should The Range open in Kirkcaldy, it would bring the total number of stores the company operates in Scotland to four.
Owner of The Range, Chris Dawson, has said his aim is to have opened 100 stores by the end of 2014.
The retailer currently has 88 stores in the UK, with its
89th opening in Benton on August 1 and its
90th opening in Eccles on September 12.
To date around six Homebase stores are reported to have handed leases over to The Range.