Waterstones is seeking alternative premises for its Camden branch after failing to agree a new lease with the landlord, forcing the shop to close at the end of the month.
Staff at the High Street store were locked out for a day last month in what the chain called "unprecedented" action by Concise Property Management over its lease negotiations.
On Monday (17th February), Waterstones announced it would now have to close the two-floor store completely but would be looking for new premises in the area.
It said staff at the Camden shop would be given work in other branches until a suitable location could be found.
A spokesman said: "We have been unable to agree a new lease for our Camden shop and will therefore be closing later this month. This is greatly regretted.
"We are actively looking for a new site in Camden and hope to reopen soon. All booksellers will be redeployed in the meantime."
Concise Property Management declined to comment.