A three-storey nightclub which formally housed Gatecrasher in Leeds Grand Arcade will not re-open when students return to the city next month.
BED Club, which featured a VIP area, five bars and two main rooms when it opened in 2011, closed its doors for summer as usual earlier this year.
The 700-capacity venue, accessible from New Briggate, has not yet been put on the market by the Victorian arcade’s owners ATC Properties although it is believed they are intent on turning some of the space into smaller retail units.
A spokeswoman for BED Club told the YEP: “The location and configuration of the venue no longer matches with the current management team’s vision for clubbing.
“The venue is too small and despite the proposed development of the Grand Arcade, the parent company’s strategy moving forwards is for large capacity clubs in city centre locations.”
She said that the owners have plans in place for one-off, large scale indoor and outdoor events in the area.
BED’s parent company is Gatecrasher Clubs & Bars Limited although the YEP understands it is managed by a number of different parties.
The Gatecrasher nightclub business, which comprises of companies including Gatecrasher Clubs & Bars Limited, has reportedly undergone a pre-pack administration after finding itself unable to pay its debts, which include £3m to Barclays Bank and £500,000 to HM Revenue & Customs.
Chris Ure, chairman of arcade owner ATC Properties, said: “BED nightclub closed its doors recently and this now offers a unique development opportunity to create smaller café/bar and retail units.
“Despite not having yet marketed the premises ATC are already being approached for space.”
BED was initially marketed as a premium nightclub that incorporated a champagne bar, cocktail bar and bottle-to-table service but less than two years after its launch its doors will remain closed.
The move comes as the transformation of Leeds Grand Arcade continues, with its owners returning many of its empty nightclub units into retail space.
Parts of the former Heaven & Hell nightclub within the arcade have recently been turned into the two-storey Handpicked Hall retail space for independents and its old basement is to open as The Pit bar on August 31.