CHESTER city centre co-ordinator Stephen Wundke has closed his Groves Bistro & Bar.

Co-owner Mr Wundke admits the business had failed saying “the best operator” in the city is taking over the premises with a £500,000 refurbishment in the pipeline.

It is understood the operators of Bar Lounge are behind the new venture.

Mr Wundke, chairman of the Restaurant Association of Chester and Cheshire, blames the local authority’s rejection of two plans to redevelop the site.

But he says the company is not being liquidated, the five full-time staff are either going travelling or have found other jobs and no suppliers will be left being owed money.

He said: “I have never earned a penny out of running The Groves. I work for city centre management, I work for the racecourse, the Food and Drink Festival and hopefully the Festival of Chester.”

Mr Wundke said he volunteered to be made bankrupt in 2001 over tax owed to the Government. In 2006 he was chairman of Creole Ltd, formerly Club Globe, when it was wound up. In 2007 he was chairman of Revival Ltd, formerly Pastarazzi Ristorante, when it was wound-up.

Asked if he was embarrassed at the bar’s failure, Mr Wundke responded: “No, not at all. There’s no embarrassment in having a go and ultimately paying the price for the fact we didn’t get planning permission.”

He added: “You take a gamble and sometimes you win and sometimes you lose. The site will hopefully be developed and reach its full potential.”

Mr Wundke, 48, of Five Ashes Road, Westminster Park, said The Groves had cost him “an awful lot of money” and had cost building owner Stuart Williams about £120,000 in pursuing the failed planning applications.

“In the winter nothing happens down there. It becomes a very dark place and from that perspective it’s a real struggle to keep the place going. It’s good in summer but you can’t have a business that relies on sunshine.”