Treasure Trove Nursery was set up in July 2009, as a distribution operation primarily focused on distributing Brio Nursery products in the UK and Ireland.
The firm says the closure was undertaken with the complete understanding and agreement of Brio which is now seeking an alternative arrangement for its Nursery range.
The ongoing arrangement with Brio as its exclusive UK and Ireland distributor for the Wooden Railway, Toddler, My Very First and baby prams remains unaffected by the move.
Commenting on the decision Treasure Trove’s chairman, Robin Bennett, said: "It is never nice to take action like this but it became clear that the right course forward for us was to focus on, what I believe the company has done well for the last 10 years, distributing quality toys to quality retailers with a quality of service and margin to match. The nursery venture was negatively impacting on that and we have acted swiftly to get back on track."