Based in Kirkcaldy since 1825, Peter Greig & Co will close its doors for the last time on Friday.
Around 20 people worked at the factory on St Clair Street.
A family owned firm, it was once one of 15 mills in Kirkcaldy alone.
Fife’s industrial heritage was built on coal and textiles – at their peak in the 19th century, the mills employed around 10,000 people.
It is understood that the company had been in contact with Fife Council’s economic/employability team over the past year.
On Monday, a number of lorries were seen removing heavy equipment from the factory.
Scottish Linen, the retail side of the business confirmed in a Facebook post that it was closing on April 30.
It is understood to be finishing its final orders – said to be around 400 after a big response to the closure announcement.
Its latest Facebook update said: “We did not quite anticipate the level of response we have had, and as we are stretched pretty thin, it may be a while before you receive a response from us or your order.
“If you have been refunded, we are out of stock of the fabric or product. We wish we could find other alternatives for you, but time and manpower won’t allow.”
The closure marks the end of the linen mills in Kirkcaldy.