After running the popular watering hole for 11 years, Mark Deason was "more than happy" to say goodbye.
"It's been a magical decade, really."
Due to noise complaints, the bar's operating hours were cut in October to a 1am closing Monday to Saturday nights and 10pm closing on Sundays.
Since then, directors of Rosehill Properties Ltd, which owned the tavern but not the building, decided they were "not prepared to continue", Mr Deason said.
About $60,000 worth of alterations would be required to soundproof the building and obtain a late licence. The property owner refused to assist them and they were not prepared to foot such a large bill themselves, he said.
The last day of their ownership would be February 28. The operation would then go into the hands of the property owner, who had a "number of offers on the table".
"It's been bloody good and I'm planning to enjoy the next two weeks," Mr Deason said.
He had plans for a new bar development in the old underground market in George St. Most of the plans had been developed and it was now a matter of getting consents sorted, he said.
Four other premises in Dunedin either closed recently or were expected to.
An application to return El Sol to residential zoning was before the Dunedin City Council, while The Backstage, Yellow Train and Murphy's Irish Bar had closed, Dunedin District Licensing Authority inspector Tony Mole said.
He put this down to the change in the dynamics of drinking as more people chose to drink at home before going into town.
Supermarkets selling cheap alcohol also had an impact, as people preferred to spend $12 on a box of beer than $8 on one beer in a pub, he said.
