IT IS one of Hampshire’s favourite restaurants whose founder once played host to A-list celebrities such as The Two Ronnies and Dame Shirley Bassey.

But Fantini’s – formerly La Margherita – has closed in a move that will shock thousands of diners who loved to eat out at the waterfront premises in Town Quay, Southampton.

Landlords Associated British Ports (ABP) has now taken possession of the property.

Last night ABP said it had been “supportive” of the business, owned by Southampton-based Kanansas Ltd, but was owed more than 18 months’ rent, leaving it with no alternative but to terminate the lease.

Restaurant manager Sebastian Bousson claimed that takings had slumped because no action had been taken to resolve a problem with the quay’s sewage system.

He added: “The smell has been horrendous and we’ve had numerous complaints. It’s very difficult to trade in those conditions.”

Mr Bousson said the owners were hoping to reopen the business, which employed between 15 and 20 people.

He claimed he was unable to make any further comment for legal reasons, but vowed that people who had paid deposits would get their money back if the restaurant remained closed.

Last night the popular eatery was eerily quiet.

One passer-by said: “All the tables and chairs are laid out as normal. Apart from a notice on the door it looks as if you could walk in and get served straight away.”

Stewart Dunn, chief executive of Hampshire Chamber of Commerce, added: “It’s a long-standing restaurant that’s well-known among residents and business people alike.

“We’re naturally disappointed that it’s closed. It’s a loss to the city and particularly the waterfront area, which is due to be rejuvenated in the years ahead.”

David Crudgington, whose company, Niche Local Business Directory, has handled some of the restaurant’s advertising, added: “My reaction to its closure is 100 per cent shock.”

The family-owned business is named after the late Franco Fantini, who was one of the city’s best-known restaurateurs.

Franco is credited as the man who brought the true taste of Italy to Southampton after opening his first restaurant in the city in the early 1970s.

Over the decades that followed Franco turned La Margherita into a local institution, first at Commercial Road and then Town Quay.

Last year his former business partner, Nikos Raftopoulos, gave the premises a facelift and changed its name to Fantini’s in tribute to its founder.

Speaking at the time he said: “Franco and I were not only partners but he was also my best friend, and he liked nothing better than seeing his customers having a great time.

“At Fantini’s we aim to create the same atmosphere, ambiance and service which Franco would have approved. We will do things right, just like Franco did.”

According to records kept at Companies House, Kanansas Ltd is run by members of the Raftopoulos family.

But Nikos Raftopoulos told the Daily Echo he was no longer directly involved in the running of the restaurant and declined to comment.

A notice on the door refers inquiries to Southampton solicitors Paris Smith.

It adds: “Any person who owns belongings in these premises must contact the landlord or his agents within 14 days to arrange removal of goods.”

Paris Smith said it had “nothing to add” to ABP’s statement.

THE well-known restaurant has served generations of Hampshire diners since it opened as a tiny cafe in the 1970s.

La Margherita was originally called the Cabin Crew Cafe, which occupied a small site in Commercial Road.

It was opened by former cruise ship worker Franco Fantini, who started out with only a handful of tables. Despite its humble beginnings the cafe quickly gained an outstanding reputation and long queues began to form outside.

As the business became more popular it changed its name to La Margherita and expanded into the building next door.

The restaurant was only a stone’s throw from the Mayflower theatre and attracted many of the star names who performed there, including Billy Connolly, The Two Ronnies and Dame Shirley Bassey.

Its standing as an institution in the city was cemented when “Let’s go Margher-eating” became a popular phrase among residents.

The restaurant moved to Town Quay in 1998.

After changing its name to Fantini’s it continued to draw big names including model Calum Best - son of the famous footballer George - and boy band JLS.