Saturday.

Co-owner Mrs. Sandra Maranzana, wife of Portofino-owner Mr. Cesare Maranzana, said: "We feel it is in our best interest to close.

"With the loss of business there's no way that we can keep ourselves afloat.'' Asked what could have caused the slump in Oscars' once-thriving business, Mrs.

Maranzana said: "I'm not sure, but something went drastically wrong.'' The closure will mean job losses for four Bermudians and the end of weekly gigs for at least two local bands.

But Mrs. Maranzana strongly denied claims that her husband was trying to get rid of Bermudian workers.

The claim was made by the bar's manager who said she learned of its closure from one of the bartenders on Wednesday night.

The manager also accused Mr. Maranzana of bringing in an Italian waiter to take over jobs filled by Bermudians.

She said a letter from the Bermuda Industrial Union saying staff wished to have union recognition was also ignored.

And she claimed when Mr. Maranzana learned that Bermudian workers were planning to go to the union, he threatened to "blow up the building or sell it''.

But an angry Mrs. Maranzana said: "My husband is a builder and a creator, not a demolition expert.

"The Italian is married to a Bermudian. We hired him to assist Miss Amanda Gordon, who is a Bermudian manageress.'' Mrs. Maranzana said the union may have sent a letter requesting recognition to Miss Gordon. "But she has not discussed it with us.'' Mrs. Maranzana also said Oscars had only had four Bermudians on its payroll for the past four months -- as opposed to six reported by the manager.

Miss Gordon said in addition to herself there were three Bermudian bartenders and two Bermudian security guards, one of whom was off the Island until June 1.

But Mrs. Maranzana said: "We don't have six Bermudians. And as far as we know, no one employed by us is off the Island.'' Workers at the bar have reported the matter to the BIU.

The union's general secretary Ms Molly Burgess was expected to bring the issue up at a meeting with the Labour and Home Affairs Minister yesterday. But the meeting never materialised.

However, BIU president Mr. Ottiwell Simmons said the union "will not sit around for this one''.

"We have not yet received anything official from the owners and operators of Oscars,'' he said. "But he (Mr. Maranzana) is certainly liable to those Bermudians.

"He is certainly acting in an unlawful manner by discriminating against people who seek to be members of the union.

"He better get himself some legal advice before he puts himself out of business and gets himself into trouble.''