C D Field Butchers was originally started in 1902 by Daniel Field and his great-grandson, also Daniel has been running the shop in recent years.
The shop in High Street, next to the Red Lion pub, closed its doors for the last time on Saturday.
The award-winning business had been struggling to compete with cheap meat from supermarkets in the area.
At one time the family had a chain of 111 shops including Dudley, Upper Gornal, Brierley Hill and Kingswinford, but it has contracted to just the Sedgley premises in recent years.
The business took over an adjoining shop and branched out into selling hot pork sandwiches.
Mr Field's late father Richard was a runner-up in the best local food retailer category in the BBC Radio Four Food and Farming Awards in 2003.
He also won awards in the Black Country Festival of Food for traditional faggots, pies, sausages and home-cured bacon.
The family's homemade faggots have been made to the same recipe for more than six decades.
The closure comes just weeks after another family business in the village, electrical retailer Goulds, also shut.