The owners of a Yorkshire pub that has hosted gigs by Jarvis Cocker and the DJ Mr Scruff have been threatened with a £20,000 fine and jail for painting their building yellow.

The Golden Lion pub, in Todmorden, Calderdale, has gained something of a cult following since it was transformed five years ago from a run-down hostelry into a thriving live music venue and community space. But an effort to brighten up the town ahead of the Tour de Yorkshire appears to have backfired.

Matthanee Nilavongse, known locally as Gig, and Richard Walker took over Golden Lion Pub in Field Square, in the Upper Calder Valley market town, in 2015. The pair have since transformed it.

As well as hosting music acts, it provides a setting for everything from UFO meetings to art classes and has become a pillar of community support during the recent flooding and ongoing coronavirus pandemic, providing free food and drink to residents in need.

They say they changed the exterior from white to a canary yellow in anticipation of the planned Tour de Yorkshire passing through, although the event has now been cancelled. But last week, while the painting was still in progress, Gig was shocked to receive a letter from the council threatening the fine and six-month jail term.

Repainting in progress. The building is Grade II-listed. Photograph: Yorkshire Live/MEN Media

“The letter we received told us that we were breaching the law... this was a real shock and we stopped painting straight away,” Gig told Yorkshire live.

“We felt a little sad to receive this, and disappointed, as we’re an organisation that contributes a lot to the town.”

The pub owners have since written to Calderdale council’s planning department and more than 1,000 people have signed a petition calling for the building to remain yellow.

Gig added: “I understand that we are a listed building, but the building has in fact been orange and pink in the past. We also understand that we are based in a conservation area, so there is a bit of confusion at the moment, but I’m hopeful we can cut through that.”

Councillor Jane Scullion said they wrote to the owners of the building, which is Grade II listed, after receiving a complaint and that the council had a duty to investigate alleged breaches of planning control and works to listed buildings.

“We understand the contribution that this venue makes to the cultural and economic life of Todmorden and we would like to work with the owners to achieve a mutually agreeable solution,” she said.