A popular bar and nightclub in Stafford has closed with 26 jobs axed after its parent firm went into administration.

Administrators today confirmed they are trying to find buyers for the Chicago Rock Cafe, on Bridge Street, which is currently being gutted following the closure.

A total of 31 of the 50 Chicago Rock venues have been saved by a US private equity firm Sun Capital – including the Walsall club – but the Bridge Street club is vacant and for sale.

The venue, which was a carpet showroom until the late 1990s, was relaunched after a £250,000 makeover in late 2003 and became a prominent feature of the town’s nightlife.

It was again rebranded as Chicago Rock/Love2Love and received a further £300,000 overhaul after 3DE bought the chain in 2007.

But the parent group failed to ride out the recession, and the confirmation comes as a blow to Stafford’s nightlife which had been boosted by the opening of the premiere Couture nightclub on Newport Road.

Plans to open an upscale bar at the former Chetwynd House post office, and the new Greek restaurant and bar on Doxey Road, had looked to have put the town’s night economy back on track.

Grant Smith, spokesman for administrator Zolfo Cooper said: “On appointment the joint administrators immediately sold 31 sites, along with the Milton Keynes Head Office.

“Regrettably, no buyers were found for the remaining 18 sites within the group. Due to the ongoing losses and lack of available funding, continued trading at these sites was not possible, resulting in the immediate closure of these venues and the redundancy of 250 employees.

“However a number of these are still the subject of ongoing negotiations, and the joint administrators remain hopeful of securing a buyer for these.”

Council worker Daniel Arnold, from Rugeley, a former reveller at the Stafford club, said: “One day they were promoting their club nights on the internet, the next I heard the rumours it was gone completely. A lot of people actually think that it’s been closed for refurbishment, not closed altogether

.“It was always very busy in there and had a good mix of older and younger people.”