A Cinema heralded as a town's flagship investment has gone into liquidation after the operators said they couldn't afford the rent.

Accrington's Premiere Cinema, which opened last November amid a blaze of lasers and publicity, closed on Monday night.

Simon Hulse, the chairman of Somerset-based leisure and property company GSX, which ran the Premiere brand, said the company it set up to run the cinema had gone into voluntary liquidation with debts approaching £100,000.

But today Hyndburn Council leader, Peter Britcliffe, pledged the show would go on and every effort would be made to keep a cinema in the town.

Mr Hulse said the company couldn't afford to pay the rent, which he claimed was £150,000 a year and appeals for it to be lowered had been rejected.

The site owners Globe Enterprises -- one third owned by Hyndburn Council -- denied the figure but said GSX owed a "significant" amount in back rent.

The 870-seat, four-screen complex was part of the £3.5million Viaduct centre that also includes a McDonald's drive-thru restaurant and a 20-lane Superbowl.

The opening brought to an end more than 10 years without a silver screen in Accrington. The project was initiated by local schoolgirl Emma Allardice, who spent two weeks collecting 140 pages of names in her quest to see a cinema in the town.

Mr Hulse said he took over the day-to-day running of the company in April and quickly realised it was in difficulties because of the rent and lower than anticipated ticket sales.

He said the company, which has two other partners, had invested £375,000 in the venture, which was GSX's only cinema operation.

"We are close to £100,000 down. When you get to that point and you are looking at a rent that's £80,000 too rich you have got to stop it.

"The rent equates to £11 a square foot. We have been offered other places nearer to London for £7.50 a square foot.

"We were convinced by everybody in the business that was the rent that was payable. But when you get into a business you get the reality.

"From the end of May, I said on a good month we would lose £3,000. The level of business we were expecting was considerably higher than we have got. We were anticipating 140,000 ticket sales a year but it turns out Accrington is more like 100,000.

"You either talk to people and adjust to keep the business going or you have to stop what you are doing and that's what we are doing right now."

Stuart Nevison, a director with Globe Enterprises, said: "The company owes a significant amount. We have been in talks with them for a considerable period and it's just not been possible to resolve the situation in a way that can work for both of us.

"It's been very difficult to bring a cinema to the town but that doesn't mean we are not committed to keeping cinema in the town -- we are.

"The rent is less than £150,000 a year but this company has not been able to make it. Although they have asked for a change in the rent, there are substantial back rents owing and that has been something we have not been able to negotiate with them."

Coun Britcliffe said: "I have instructed our officers to work to ensure that cinema remains in Accrington and the show must go on. It has been a very popular attraction. 100,000 ticket sales a year is quite a high footfall -- it's something the people of Accrington have been very pleased with.

"There are certain costs to the council in acquiring land for Globe Enterprises and you need a return."