The owners of the sports bar and restaurant on Queen Street have finally thrown in the towel after five years of trying to make a successful venture out of the troubled location - putting 11 staff out of work.

Hector Watson, Chief Financial Officer at Thomas United Co. Ltd., which owns the Clubhouse Sportsbar and Restaurant as well as Four Star Pizza, announced yesterday that the bar had closed on Sunday and was to be put up for sale or rent.

But he said the company was opening a new burger bar in Flatts to fill a hole in the market in the area.

Mr. Watson, however, blamed the downturn in the world economy as a reason for the company to decide to finally close the doors of the business.

"It was a very popular bar, but for some reason it wasn't functioning properly," said Mr. Watson. "Obviously it is a very hard decision to make. We have built up relationships with staff and people. But sometimes you have to make a hard decision for the greater good of the company."

This is despite the bar becoming a popular Friday night haunt for young Bermudians looking for a good time.

In an official release, Mr. Watson said: "As reported in various financial journals the global economy is currently experiencing an economic downturn and the effects are already being felt in Bermuda. The reduced levels of consumer spending an the severe reduction in tourist arrivals are just some of the symptoms of this impending recession. This economic downturn is expected to continue for the foreseeable future and all indicators are that it will get worse before it gets better.

"At the Clubhouse we are not immune to these recessionary trends and as a result we have made a strategic decision to close our operation and put the property up for sale or rent."

Mr. Watson, speaking to The Royal Gazette after issuing a statement, said there had already been some interest in the property.

Mr. Watson said that they were looking at the company's bottom line and decided due to the economic climate not to try and fix the problem, but to start afresh.

That was why they had decided to open a new diner in Flatts, which would be in the same building as Four Star, but would be operated as a separate venture.

"There is nowhere in Flatts to get a burger at the moment after the Halfway House closed, and we are hoping to fill that demand," he added, stating that the change was already being worked on and it would open in about a month.

The Sportsbar opened its doors in March, after the family-run venture floundered in various forms after opening as Chit Chat restaurant in September 1996.

Chit Chat shut its doors in April 2000 after a brief incarnation as a late night jazz venue. The family-run company invested heavily in the original Chit Chat venture, but Marico Thomas, its co-owner, said at the time that when that did not work they tried to adapt it and came up with the Sportsbar concept.

Sports memorabilia had been put on the wall, with jerseys from NBA players and NFL players - 50 to 60 pieces were put on the walls.

At the time Mr. Thomas said: "Its about food, fun and games."

But the fun went too far in June, when female strippers were arrested in the bar doing a Father's Day show for performing oral sex and lap dancing in the club.

A prosecutor explained how three American women had been found performing in front of a "moderate number of male patrons" and said the windows of the club had been blacked out. The women were deported.

The case against the management is still pending.