Two prominent bars in Leicester’s Cultural Quarter have closed after the landlord decided to pull the plug.
The Queen Victoria Arts Club, , closed yesterday following a breakdown in talks between the landlord and management.
The private members' bar and restaurant opened last year following a major restoration of the once run-down Queens Building in Rutland Street.
The Exchange, a sister bar which stands across the road, has also shut.
There were 32 staff employed between the two businesses.
Landlord East Bridgeford Investments had a half share in the Queen Victoria, having invested £650,000 in the extensive fit-out and in the business itself.
The business said it had pumped another £60,000 into the bar in the past three months.
East Bridgeford Investments is also landlord for The Exchange - a popular venue on the city's night-time scene for almost a decade.
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The closures come in the run up to Christmas, which would have been the busiest time of year for both venues.
What did the bars' owner say?
Cassie Davison, who runs both bars, said despite trying to find a way around the issues, she had been bitterly disappointed to announce the closures.
Leicestershire property specialist Intali is already marketing the Queens Building bar and restaurant.
A brochure calling it “probably the best bar/restaurant space in Leicester” is offering the property for an annual rent of £60,000.
Ms Davison said: “Whilst this is a massive blow and will have a huge financial and personal impact on us our thoughts are with our extremely loyal suppliers who, like us, are small local businesses and will be out of pocket and of course our immensely professional and caring staff who not only have been made redundant but will also lose income.
“The next few weeks are going to be particularly difficult but we take great pride in everything that we have achieved over the past 10 years in the Cultural Quarter.
“We are proud to have supported a huge number of charities and community groups throughout our years at The Exchange and Queen Vic.
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“We have taken great pride in our role in Leicester, championing the city and winning national awards as a venue.
“Alongside the loss of both businesses we will be disappointed to no longer be part of the Cultural Quarter community it has been a privilege to be able to support the other businesses in the area and to have been part of the growth of the area and the community.
“It has been a great joy to have been able to take such an active and often leadership role in so much of the Cultural Quarter activity including the vast number of festivals and events that have taken place, plus of course, ‘Bring the Paint’ which it was a pleasure to have been a member of the initial team developing the concept and delivering the first project.
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“We would like to thank all our wonderful and eclectic customers who have made our working day so enjoyable over the years.
“Our suppliers who have supported us and without exception our amazingly professional and talented team of staff who we hope, despite the inevitable shock and anxiety that this news will create, find good fortune in their futures.”
Ms Davison said that in the past few months it became clear the landlord no longer wished to keep funding the business, so she had looked for alternative investment.
She said a potential investor had come forward but the landlord decided to close the businesses.
She said: “We have been speaking with him this morning in order to find a way forward, however, he has made it clear that he is no longer prepared to negotiate with us or our potential investor and therefore with great sadness and disappointment our businesses have ceased trading.
“It is difficult to see the logic behind this decision and we are of the view that both businesses have been taken from us.”
What did the landlord say?
A statement from Intali on behalf of the landlord said: "His commitment to the success of this ambitious project is demonstrated by his £400,000 contribution to the initial fit-out, the provision of £250,000 working capital to keep the business running and, in particular, a further £60,000 cash injection over the last three months.
"Given that the business has required his “life-support” for the past eight months and the signing of surrender documents by the tenant yesterday, today’s unfortunate events should be no surprise to the management of QVAC.
"Discussions were ongoing until last night, but the landlord decided that a loss of over £700,000 was not recoverable and, in the absence of an alternative investor being found during the last six months, was left with little alternative to accepting the surrender.
"The landlord has worked for 20 years to refurbish the beautiful buildings in the Cultural Quarter, providing opportunities for independent and distinctive business such as Exchange and QVAC.
"Both businesses will be very sorely missed – as will Cassie’s immense contribution.
"We hope to find new tenants to take on the buildings in the very near future."
Ms Davison is the daughter of Leicester city mayor Sir Peter Soulsby, who takes no part in decision making relating to the Cultural Quarter, because of her ownership of the two businesses in the area.