operators revealed it was losing money.

The Surf Club will shut on October 30, putting 20 staff and well known entertainer Jimmy Keys out of work.

After re-opening in May, the revamped Front Street bar and restaurant struggled financially and it came to a head on Monday when directors Stephen Martin and Michael Smith announced the news to employees.

Last night, Mr. Martin said they had come to a stage when a decision to shut simply had to be made.

"It wasn't making money, there is no other reason than that,'' he said. "If you are not making money through the summer, then you are not going to make it in the winter.

"It is too costly to continue.'' The venue -- which became popular with tourists and locals -- will remain open and fully operational up until its closing, with Jimmy Keys still at the piano. Mr. Martin said it was sad to finish, especially as the place had started to build up a good name.

"We felt in the interests of tourism it was important to run through the season, which we have done,'' he explained.

"I think the place was getting a good reputation, service, good food and entertainment were excellent. The concept was good, we just couldn't control the costs as we would like.'' Mr. Martin and Mr. Smith, operating as Paget Partners Ltd., took over the premises from Elbow Beach Hotel and Development Co. in April.

After an extensive revamp, including the installation of a micro brewery and move to a "steak and sushi'' concept, it added renowned Island performer Jimmy Keys to the programme.

Formerly with the Southampton Princess, Mr. Keys last night said staff had an idea that the closure was coming but were still shocked at the announcement.

And he said there were signs that the business was beginning to pick up, with promising future bookings. "It is not a happy situation,'' he said. "They had very good bookings for October to December. "It wasn't given enough time.

It was building up pretty good. It is a shame because it was a big hit with tourists and locals.'' Mr. Keys said he was unsure what his next move would be, adding that he was expecting to be at the Surf Club for longer than it actually turned out.

Front Street club to close in October Mr. Martin paid tribute to Mr. Keys and the staff for their hard work and dedication.

He said: "He (Jimmy Keys) is a very good entertainer and has done an excellent job. He has been a good trooper.'' A statement released from Paget Partners said efforts were being made to help all staff find employment.

It added that a special Octoberfest beer, and other new brews, would be served up until the closing date.