Imbibe Food 'n Drink, the restaurant and craft beer hot spot located on the first floor of TheMuseum in Kitchener, will be leaving the space by the end of June and won't be reopening anytime soon.

In a release issued late Tuesday, CEO David Marskell said, "We were notified today that Imbibe has chosen not to renew its lease beyond June 2015."

"As a not-for-profit, TheMuseum must consistently review its bottom line and ensure all areas for revenue are explored," the news release from TheMuseum said.

"The store-front space is an ideal location for businesses during the revitalization of downtown Kitchener, and could support rental income at market rates while providing a key revenue source for TheMuseum’s programs."

Imbibe owner Bill MacTavish also operates The Boathouse in Kitchener's Victoria Park. MacTavish posted a statement about the closure on his Facebook page on Wednesday afternoon.

"Unfortunately, we were not able to come to agreeable terms for the lease. The increase in rent was not insignificant and simply could not be absorbed into our business model," MacTavish wrote.

"Imbibe would not have been possible without continued help from TheMuseum, and for that, my family and I will be forever grateful. TheMuseum is an important cultural venue in Downtown Kitchener and I understand their need to increase revenues in order to keep their business model running properly."

'Hopefully, in time, we'll do it again'

MacTavish added that Imbibe will be shutting down before June, and that for the "immediate future" he will focus efforts on The Boathouse and his family. MacTavish said as a business that's less than three years old, he does not currently have the capital to open a new space for Imbibe.

"I am incredibly proud of what Imbibe has become and I would love to be able to just up and move and recreate what was made here," he wrote.

"Hopefully, in time, we'll do it again."

TheMuseum will take over the space Imbibe now occupies, though what will be placed in the space is still unclear. The release mentions the possibility of a gift shop, an area for tech startups to showcase their work or a space for makers to build things.

The release also indicated that TheMuseum would pursue its own license for the first-floor atrium to do more events for young professionals.