Mansion, in Aberdeen Walk, has closed – and the staff did not know it was closing until late into the evening shift.

It comes a month after another of the town's best known bars, Yates's Wine Lodge, closed.

Candu Entertainments, which owned the club, went into administration in March and was taken over by Aligo. The new firm wanted to shrink the business by closing some of their venues.

Many of the 22 workers at Mansion are to be offered jobs at another Scarborough nightspot, Bar Zero, in Westborough, which will also continue running some of the events that were held at Mansion – including the popular students' night.

Mansion club manager Simon Nicholson said: "This is a very sad time and I know a lot of people will be upset about this.

"Basically Aligo wanted to close some of the venues and Mansion is one of them. Others across the north of England have been hit as well.

"When we opened on Friday we had no idea that it would be our last night.

"I found out at about 3am and I sat the staff down and told them when we closed at 4am."

The club, which flooded earlier this month forcing two businesses below to close for the day, opened in 2006.

It took over from Club XS and was previously Toffs, Scene 1 and 2 and Tiffanys.

Brett McMann, of MCM entertainments, has worked at the club for 15 years. He said: "MCM entertainments provides the DJs and helps run the events held at the club.

"To be honest I think this closure was inevitable as so many places are shutting down. There has been new competition in Scarborough over the past few years and this, combined with the smoking ban, has not helped.

"I have been here a long time. I started when the club was Toffs and then when it became Club XS. It is very sad."

The owners of Bar Zero, Amanda and Stewart Messruther, told the Evening News they are planning to hold most of the events.

Mr Messruther said: "Both Mansion and Bar Zero use MCM entertainments –
and have decided to continue with Mansion's events by holding them at Bar Zero.

"For example Wednesday night's Saucy event which was loved by students will carry on at Bar Zero. There will be the same DJs and staff so it will be familiar for the students.

"It is very sad what has happened but we need to keep these events going. So tomorrow the event will carry on as normal at Bar Zero."
Hundreds of people have left messages on social networking site Facebook about the closure.

Karen Austwick said: "So sad – what is happening to Scarborough nightlife?"

Daniel Jenkins said: "Where am I gonna go on Friday nights now?
"I wonder how long it will take for a new club to be made there? Hopefully very soon!"

Manager of Mist bar, Tony Snow, said it will only be a matter of time before another club operator takes over the venue.

He said: "It is in a great spot and I am sure it will be taken over fairly soon.

"It could be a good thing for Scarborough as an operator might come along and put a lot of money into it to create a great night club.
"The trouble is most bars stay open until 3am now and not many people like to stay out much later than that."