The Imperial Hotel in the Sydney suburb of Erskineville is set to close indefinitely, according to sources close to the venue.

Speculation on social media also suggests that keys to The Imperial Hotel will be handed over on Monday and all of the hotel’s staff members have been sent an email informing them they are being laid off.

The Imperial Hotel was given a 72-hour closure order earlier this week, with NSW Police saying the ban was due to “breaches of the Liquor Act”. The ban was to last the weekend, but the hotel will soon be closed indefinitely.

The Imperial Hotel’s 72-hour closure came just a month after the venue was shut down by a police raid, which allegedly found staff using drugs on site while working. Two staff members were charged with drug offences.

A statement from the Deputy Premier Troy Grant’s office has previously alleged that open drug dealing has taken place inside The Imperial Hotel, with inspectors reportedly witnessing numerous intoxicated patrons and an incident in which a female patron was assaulted by a security guard.

In July, The Imperial Hotel announced that it would begin following new rules which restrict “pass outs” after 1am and entry to new patrons entirely to after 3am, despite its location outside of the Sydney lockout zone.

The owners of The Imperial Hotel have previously blamed closures on Sydney’s controversial lockout laws, and are yet to publicly comment on news that it is now closing indefinitely.

Stay tuned to Music Feeds for more on this story as it develops.

UPDATE 27/07/15: The owner of Sydney’s embattled Imperial Hotel has confirmed speculation of the venue’s indefinite closure along with the news that the venue’s current tenants Spice Group International have been booted. The hotel’s immediate future remains unclear.

UPDATE 28/07/15: The Imperial Hotel has been given two weeks to save itself from long-term closure, and has released a statement saying it is working to “return the old girl to her former glory”.

UPDATE 27/08/15: The Imperial Hotel has new owners and looks likely to reopen.

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