One of Wolverhampton’s oldest Italian restaurants was closed this afternoon, with a possession notice attached to its front door.

Mystery surrounds the future of Pepitos in School Street, in the city centre. This afternoon tables were set up and menus were on display, but there were no signs of life and no-one was answering the phone.

A trader from a nearby shop, who did not want to be named, said: “There is always some sort of mystery surrounding Pepitos but no-one around here seems to know what’s going on at the moment.

“The possession notice has gone up under everyone’s radar.”

The notice bans anyone from entering the restaurant without prior permission and states that the lease has been forfeited and the premises secured.

The notice lists the landlord as Moredun Lp (General Partners) Ltd, an estate agent and management company based in Edinburgh that was unavailable for comment this afternoon.

Pepitos was established 40 years ago by Emilia Catellani, who came to Wolverhampton from Milan as a student.

In January 2008, the firm controlling Pepitos folded with massive debts. St Judes Wolverhampton Ltd went into voluntary liquidation owing almost £340,000.

It changed its name from Pepitos Ltd in August 2007 shortly after at least one county court judgement was made against it for unpaid bills.

St Judes Wolverhampton had one director Mr Raj Kumar, who continued the business as a sole trader after the collapse of the limited company.

The restaurant had a £300,000 revamp in 2006.

It can cater for 140 people with a further 60 at the bar. Bosses were unavailable for comment this afternoon.