The shop sells boutique clothing and accessories like hats, scarfs, purses and jewelry.
Owner Shelly Newman currently operates two Merry Blu locations, the soon-to-close Lebanon location as well as a shop in Spring Hill.
The business is surrounded by a lot of competition, with the other boutique shops on the square as well as throughout the city; Newman says it is difficult to share a slice of the same pie with so many others.
Employees at Merry Blu are scheduled to work until the end of the month, but the store could close sooner depending on how quickly items are sold.
As of Wednesday, items were being sold at 50 percent off.
Some other shops on the square have recently closed, or had trouble opening. The Antique Doctor recently closed doors after 26 years of business. Level Ground coffee and Hot Chicken and Waffles, two restaurants that business owners say would be much welcome in the town center, have yet to open doors to the public.
Newman said that operations at the Spring Hill Merry Blu location would continue as normal and that the store will remain open for business.