Grantham’s Chameleon Music Bar has been closed with the loss of about eight jobs.
The music bar and steakhouse, in High Street, opened just over two years ago.
The bar was closed yesterday and it is understood the owners are currently in talks with receivers.
The bar employed about eight members of staff.
It is understood one of the reasons for the closure is the cost of a licence from the Performing Rights Society to play live music after 10pm.
A spokesman for the bar owners said that staff were told of the closure on Tuesday night and stayed until the early hours to tidy up the building.
It is the latest in a number of Grantham night time venues to run into difficulties.
The World Buffet, in The George Centre, closed a few weeks ago and the Atrium in High Street has been placed into administration.