The group's future has been uncertain for some time, with all but one of its independent members acquired by P&H and Booker.
Managing director John Liptrot said that Key Lekkerland's central office in Rugby would close at the end of August. He also confirmed that redundancies would take place, but was quick to add that there would be no loss of service for the 310 KeyStore and Key Shops which will continue to be operated by Booker, P&H and JW Filshill in their own regions.
Liptrot told Convenience Store that Booker would take on leisure accounts including Odeon and Apollo cinema chains as well as Blockbuster DVD rental. Filshill will manage Scotland-based accounts while P&H will serve accounts including NUS-owned university stores and Roadchef.
Liptrot said: "There will be no loss of service for KeyStore retailers, but there will be redundancies at head office. I am hopeful that a third of jobs at head office will be taken on elsewhere within the group."
Liptrot said he was likely to be seeking new employment after overseeing the restructure.
A Booker spokesman added: "We have informed our customers of the changes and are working with them on our implementation plans."