THE Tea Time Express bakery, which distributes to more than 1,000 shops across the country is to close with the loss of 30 jobs.
The bakery, located in the Chapelizod Industrial Estate, has been in business in Dublin since 1938.
It recently took part in the RTE television show 'The Takeover', a programme intended to help businesses survive the recession.
But now the company has announced it will cease operations on December 21.
Managing director Donal Hogan said he was devastated but added that the closure was a logical move.
"The figures just do not add up," he said. "Sales are down, but the cost of raw ingredients has been increasing significantly over the last three years.
"It has been particularly bad over the last 12 months.
"We are all just devastated. Some of the staff have worked here for around 30 years. They have dedicated many years of their life to working for the business."
Mr Hogan is still hopeful that the bakery could restart in the future.
"There is a strong possibility that it could return. . . but it is up to someone else who wants to pick it up."