Wrexham & Shropshire Railways is to cease operations on Friday, ending its services between North Wales and London, it has been announced.
The rail company said the move followed an investigation into all possible alternatives, citing the "unprecedented economic environment" as a contributing factor.
Trains from North Wales call in at Shrewsbury, Telford and Wolverhampton, on their way to Marylebone Station.
"Although the company has strived to increase passenger numbers, it has been determined that the business has no prospect of reaching profitability. Wrexham & Shropshire is not insolvent nor is it being placed in administration and all outstanding financial commitments will be met.
"Alternative employment opportunities within the railway industry are being sought for the 55 employees, and all staff wages and full redundancy entitlements will be paid," the firm said in a statement.
The Rail Maritime and Transport union said the decision was a "bitter blow" to the railway industry.
The company said it had made a number of moves in a bid to make a profit, including cutting the original service of five trains a day between Wrexham and London Marylebone, to four in 2009, then to three last month.
Chairman Adrian Shooter said: "Regrettably, we have concluded that the potential for further changes to the company's operations, including any synergy with Arriva Trains Wales, will not improve the financial position sufficiently."
Wrexham & Shropshire launched in April 2008, restoring direct train services between Wrexham, Shropshire and London, developing a reputation for excellence in customer service, reaching a 99% customer satisfaction score in the National Passenger Survey.
Despite strong growth in passenger numbers, the business has not been able to generate sufficient revenues to cover more than 65% of the cost of operating the service and in 2010 alone suffered losses of £2.9 million, said the company, which is owned by Deutsche Bahn, the German state railway.
The last train to depart will be the 1830 from London Marylebone to Wrexham General on Friday. From Saturday January 29, all Wrexham & Shropshire tickets already purchased will be valid on alternative routes into London Euston operated by Arriva Trains Wales, London Midland and Virgin Trains, and from London Marylebone by Chiltern Railways.
