The most common and most likely answer to this crossword clue is the 5 plus 4 letter word WIGAN PIER
I've seen this crossword clue in The Daily Telegraph
W
I
G
A
N
P
I
E
R
More clues leading to the result WIGAN PIER
Buddy explains!

The straight part
We know that "literary location" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case literary location = wigan pier.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.