Leicester's Queen Victoria Arts Club and Exchange closed

The Queen Victoria Arts Club and the Exchange bars in Leicester have both been closed following a breakdown in discussions between landlord and management.

Owner Cassie Davison said in a post on both websites that the landlord, also a 50% shareholder, closed both properties yesterday.

She said that after seeking alternative investment when the landlord no longer wanted to fund the business, he "ceased all negotiations" and "locked us out".

She said: "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.

"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."

However a statement from landlord and shareholder East Bridgford Investments said 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 6 months, was left with little alternative to accepting the surrender".

The statement said: "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 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."

The Exchange has been open for nine years, while the Queen Victoria Arts Club opened last year following the development of a derelict Grade II-listed property.