The final curtain has fallen for Tenby's main arts and entertainment venue, as the Town Council have confirmed that it has taken the decision to close the De Valence Pavilion from July.

"Following a meeting of the council's De Valence committee on Tuesday night, it is with great regret that the town council has taken the decision to close the De Valence to public functions with effect from July 11, 2010," read a statement from the town clerk, Mr. Andrew Davies.

The decision comes following the announcement by the De Valence Trust that they will be entering into voluntary liquidation which, as a consequence, means that the building, which is situated in Upper Frog Street, will revert back to the council with effect from May 26.

The council had previously indicated that they would honour bookings made by the Trust. However, following an examination of costs at Tuesday night's extraordinary meeting, it became apparent that in order for the council to do this up to December, they would need to use their already limited unallocated reserves.

Additional costs now falling payable by the council include - rates, utility bills, insurances, licences and staffing, but no provision had been made in the 2010/11 budget to cover these.

"This decision was not taken lightly by the council and we understand that some people will question it," said Mayor of Tenby, Clr. Mrs. Julie Evans.

"However, although in our hearts we would have liked to have kept the facility open, given the current financial climate, the building is no longer viable as a business and we must now work hard to make best use of the facility in whatever capacity this may be," she explained.

The committee considered all options, including using some of the council's reserves, but it was agreed that, based on the net projected income these events would generate, the likely deficit amount required from the public purse was too great to warrant such action.

Members felt that the finances available to the council would be unlikely to meet even basic expenditure and did not allow for any unforeseen contingencies, such as the replacement of the antiquated heating and air conditioning system.

The council did, however, agree that they would honour a wedding booking on July 10 and a number of bookings leading up to that date.

Regrettably, though, there were some Trust co-ordinated events, such as the monthly Rock and Roll Club, which would not be able to continue.

The council have stated that they are aware that the decision to close the building to functions will mean that a number of important events such as the Tenby Arts Festival, Blues Festival, Tattoo Festival and other charity events will be affected and deeply regret the disappointment and inconvenience that will be caused to the organisers and the effect it will have on activities in the town.

The council will now have to consider the long term future of the De Valence, as the building is in desperate need of upgrading and has become too costly to run in its present form.

"The Trust has failed financially with grant aid and a strong programme of community events. They have stated themselves that the building needs complete regeneration to incorporate the town's needs and this is something that the Town Council would like to deliver," said Tenby's Mayor.

"In the coming weeks, councillors will look to the views of the people of Tenby as to what they feel would be best suited to the De Valance building and to take Tenby forward as a town.

"Events such as the Blues Festival and Arts Festivals are appreciated by all councillors and will hopefully continue within the town in some capacity," she added.