A spokesperson for the Stonebridge based Co-operative Funeralcare service said: "I can confirm that The Co-operative Funeralcare in Longridge ceased operations on August 12.
"The decision to close was taken for business reasons, and the two members of staff employed at Longridge have taken voluntary redundancy. The Co-operative Funeralcare has not retained the lease on the property."
All people enquiring about funerals through the Co-op are being transferred to the Preston branch of Co-operative Funeralcare when they ring the former Longridge number 01772-782388.
Formerly Edelston Funerals, the business became part of the Co-op over nine years ago, although well known Longridge undertaker Robert Edelston stayed associated with it until taking retirement in May 2006.
The only remaining funeral service in Longridge is William Houghton and Son of Chapel Hill.
l Another business in Longridge is to close soon. The owners of the long-established Sewing Shop on Berry Lane have announced that it is to close in late September.
The closures are likely to sadden members of the town's trading community, including the Longridge Business Group, which is trying hard to promote business initiatives in the town.
LBG chairman Alistair Sheret was unavailable for comment.