BLACKWELL'S, the historic Oxford book seller, is closing its library services division in a move likely to see 55 people made redundant.

The company, which has been battling to get back into profit, announced the move today as part of its restructuring efforts.

It has sold its existing UK, European and Afraican academic library contacts to Dawson Books for an undisclosed sum.

David Prescott, who was the managing director for bookshops and online but has been appointed chief executive officer, said: “We deeply regret that one of the consequences of this closure will be a redundancy programme which is likely to result in about 55 redundancies, subject to consultation, of people that I have worked with for many years.

"Blackwell’s will be seeking to find alternative positions for some employees and we will help them find future employment elsewhere if necessary."

He added: "The Blackwell’s board is focused on our bookshop business and the direct opportunity to develop our digital offering to student, academic and professional customers.

"We are making this move to invest and tailor our services for the future as Blackwell’s remains determined to be at the forefront of these developments."

The company also announced Diane Kerr, the library services managing director, will be stepping down from the board and group finance director Mark Little is leaving. Kate Willemite, the current financial controller, will become finance director.

Blackwell’s, which was set up at 50 Broad Street by Benjamin Blackwell in 1879, moved out of its headquarters, Beaver House, in Hythe Bridge Street, in 2011 with the loss of 25 jobs.

The firm is now run from the bookshop in Broad Street. The company recently shut its music shop in Broad Street and moved it into the basement of the book shop across the road.

It remains a major employer with more than 500 staff in Oxfordshire.

Owner Toby Blackwell plans to hand over ownership to its employees along the lines of the John Lewis model once it returns to profit.

Chairman Trevor Goul-Wheeker said the closure of library services would not prevent that plan.

He added: "The board remains committed to creating a profitable Blackwell’s business which can ultimately be shared with its employees in the vision set out by Toby Blackwell, our shareholder, for a John Lewis style partnership."