Thirty jobs have been lost at the Evesham-based Young Plant Division of Proculture Plants after it was purchased by rival, R Delamore.
Production of young plants in Evesham ceased immediately and the transfer of the business left members of staff without jobs.
This acquisition will significantly strengthen Wisbechbased Delamore's market share in the raised young plant sector.
Derek Jarman, sales director of Proculture, said: "The production of the nurseries in Evesham were nearing the end of their commercial life and the failure to secure planning permission from Wychavon District Council for new greenhouses meant the directors had little choice but to accept the offer."
A difficult trading year, a decline in consumer spending and steeply rising labour costs are amongst several other reasons which were attributed to the closure. The production of the fully grown plants division will continue to trade in Evesham.