It is believed that the 30+ full-time workers at Buccleuch Printers, in Hawick, which also employs a number of casual staff, were told on Friday that the company was going into voluntary liquidation.
The company, which was founded 35 years ago, closed down its warehouse facility in Galashiels just over a year ago in order to concentrate operations in Hawick.
Buccleuch Printers refused to comment on the closure when contacted by TheSouthern this week, but a spokesperson for Scottish Enterprise Borders, confirmed the shutdown.
A spokesman said: "This is obviously very disappointing news for staff at Buccleuch Printers.
"We will be working with colleagues in Jobcentre Plus and Scottish Borders Council to offer staff support to find alternative employment and retraining opportunities.
"The Borders labour market continues to be quite strong and there is every possibility that those affected by the redundancies will be able to find new employment opportunities over the coming months."
The town's local parliamentary representatives were also quick to voice their dismay over the closure.
Conservative MSP for Hawick, John Lamont, was informed of the news as he visited local businesses along Hawick High Street on Friday to discuss the current difficulties facing local traders.
He said the news had come as a great shock, particularly as it comes so soon after the revelations that local knitwear firm Pringle is to cut jobs and that waxed jacket specialists Barbour is to close its plant at Tweedbank.
"This is another setback for the Borders," Mr Lamont said.
"I was in Hawick when the news started to break and there was great surprise amongst the local traders and the townsfolk as the news spread around the community.
"For the Buccleuch workers, it is now important that Scottish Enterprise and other agencies move quickly to help them to find alternative employment so that their skills are not lost."
Hawick provost and local councillor Zandra Elliot says it will be a sad day for the town when the print firm goes.
"It's certainly bad timing, coming so soon after Pringle cut some jobs," she said. "And 30 jobs in Hawick is a substantial number. There was also the suddenness of the announcement which took everyone by surprise."
Mrs Elliot says the news should prompt a review of the trading climate in the town.
"This is a real concern. We'll have to see collectively what can be done about the situation in Hawick," she added.
Local MP Michael Moore and fellow Lib Dems, Jeremy Purvis MSP and Jim Hume MSP, are all now seeking a meeting with SEB.
Following discussions with senior management at the company, the trio says they understand the closure decision was taken after a forward assessment of the market prospects both locally and across the country.
Mr Moore was immediately in touch with SEB, which confirmed that the employee assistance scheme was ready to advise and help the affected employees in Hawick and elsewhere.
Mr Moore said Buccleuch Printers was a highly respected company with a first-class track record.
"As a customer of the company, this comes as a real shock that the management and workforce have been put in this position," he told us. "The immediate priority is to ensure that the employees affected get all the necessary support.
"The company's assessment of the market prospects show worrying indications which I and my Scottish Parliament colleagues wish to discuss with Scottish Enterprise Borders as a matter of urgency."