The Puzzle Hall Inn, Sowerby Bridge, gained huge popularity by launching new bands and selling locally-brewed real ale.

But after a year struggling against spiralling costs and competition, li9censee Nigel Mount made a tearful announcement to the packed pub on New Year's Day and shut on Wednesday.

Nigel, 43, who has run the pub for the past four years, said: "We fought to keep it open but I have run out of money.

"Everybody was shocked and there were a lot of tears. It is all very sad but we tried to give it a good send-off.

"The competition is too much for us, along with the rent and price of beer because of supermarkets. The smoking ban hasn't helped either."

Manager Debbie Larratt, 43, was also packing her bags, along with the Puzzle's famous cat, Willow.

She said: "This pub has been around for hundreds of years and I have loved my time here. It's a real shame."

It is famed for its music nights. More than 800 bands have played at the Puzzle over the past four years and some of Calderdale's most promising young musicians have been launched from there.

Ben Adey, 24, the singer with Halifax band Modeliste, said: "We are absolutely devastated. It is a real blow. We started off playing there."

Pete Gillon, a long-term regular and music promoter at the pub, said: "I was in tears when the announcement was made – a few of us were. It is a real end of an era."

Punch Taverns, which owns the Puzzle, said: "At this stage, we cannot confirm plans for the pub, but will be doing everything we can to ensure it is trading again as soon as possible."