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A city centre nightspot which specialised in craft ales has closed suddenly – just eight months after its grand opening.

Fire Island, on the corner of Westgate Street and Quay Street, opened in November following a £250,000 investment by the Welsh Government’s Finance Wales.

Attempts to contact the directors of the company behind Fire Island, Beatbox Bars Ltd, were unsuccessful.

Beatbox Bars Ltd also owns two other Cardiff nightspots, Buffalo Bar and 10 Feet Tall. It’s understood those clubs will remain open until a buyer is found.

There was no answer at Fire Island and none of the managers at Buffalo Bar and 10 Feet Tall wanted to comment.

London-based administrators the SFP Group are thought to have been appointed to handle the case. The insolvency advice firm did not respond to requests for a comment.

Beatbox Bars Ltd was run by a group of friends who worked their way up through the licensed trade. They opened Buffalo Bar in 2005 and 10 Feet Tall three years later.

Last November, Fire Island opened in the former Grade II-listed South Glamorgan Staff Club following a £250,000 “debt investment” from Finance Wales, a subsidiary of the Welsh Government.

John Rostron, chief executive of the Welsh Music Foundation, said: “From a music industry perspective, Fire Island was a great asset to a part of town that, along with The Moon Club, Dempsey’s and Clwb Ifor Bach, was becoming Cardiff’s cultural quarter, not to mention a flagship for indie music.

“My concern now is for Buffalo and 10 Feet Tall – it would be a real blow for the capital’s live scene if they went too.”

Fire Island specialised in American-style smoked meat and craft ale – serving its own house beer brewed by Newport’s Tiny Rebel Brewery. Tiny Rebel declined to comment.

Arfur Daley, editor of the Brew Wales blog, said: “The problem I think they had came from the fact there were so many other pubs crammed around it.

“Also, the niche market to which they were appealing was always reflected in their slightly higher prices. And, in these austere times, who’s going to want to pay extra for steak when there’s a burger cheaper down the road?”

A spokesman for Finance Wales said: “We can confirm that it invested in Beatbox Bars Ltd, but is unable to comment on the detail of individual investments as these are commercially confidential.”