The setting, which is based in Thrapston, Northamptonshire, is considered to be no longer viable by the nursery group, part of Midcounties Co-operative, and as a result will close at the end of August.
It follows significant investment in the nursery, including a £125,000 refurbishment last year, after the Co-operative acquired the setting, along with three others in Oxfordshire, from the Petite Enfant group in 2012.
Rated good by Ofsted, the nursery, a converted school building, is registered to care for 79 children and employs 23 members of staff, all of whom could face redundancy.
Co-operative Childcare has yet to make a decision about the future of the building.
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