A POPULAR city nightclub has played its last tune after succumbing to the credit crunch.

Mood, in Xscape, closed its doors for the last time following a period of financial struggle, with its parent company, Herald Inns & Bars, recently going into administration.

When asked about the club's monetary difficulties, a spokesman for administrators Ernst & Young said: "How long is a piece of string? Essentially, it was a loss-making venue."

One of the factors which may have contributed to Mood's losses could be its lack of smoking facilities, according to a former staff member, who wants to remain anonymous.

"The smoking ban came in last summer," she said. "But the owners never installed any facilities for people to smoke comfortably outside.

"But it was't just that. I worked there since it opened in 2003 and it never really evolved like other clubs in the area."

By contrast, Oceana – two units along from Mood – is currently undergoing a multi-million pound refurbishment to create a new 'Rhythm Room' along with other revamped sections.

And several clubs in the nearby Theatre District, including Lloyds No 1 and Buddha Blue, also underwent big changes to improve facilities and entice more customers.

But Mood's troubles do not appear to reflect Xscape's overall popularity. Marketing manager Steven Gordon-Wilson said: "We are pleased to report trade is generally up at Xscape Milton Keynes, with footfall last week up by seven per cent year on year."

Mood's closure is one of 16 across the country for Herald Inns & Bars – whose remaining 21 venues, including the Brannigans chain, have been taken over by Cougar Leisure.

It's apparently NOT the credit crunch that's caused the closure of another city nightspot – but that won't make any difference to the loyal fans of Shout.

The bus station-based club,formerly called Chicago Rock Café, is shutting after 16 years.

And according to manager Lorraine Keefe the closure was "simply due to issues with the lease that unfortunately could not be resolved".

And mystery surrounds the sudden closure of a once-popular pub at the heart of Eaglestone estate.

The Eagle pub, designed to be a hub of the community, has been locked up for the past four weeks and is already being vandalised.

It is understood the problems began when a utilities bill was unpaid and the electricity was cut off.

Baffled residents were given no warning of the closure and know of no plans for the pub to be sold or re-open.

"The pub was the heart of our local centre and now it is looking more and more like a ghost town around here. It's not good," said one resident.