The Great Gatsby, based on the corner of Division Street in Sheffield, made the announcement on social media this morning.
The bar has been open for more than a decade on the busy main street in the city.
The Great Gatsby said the decision to lay off staff was 'horrible'.
Posting on Twitter, it said: “It’s looking less and less likely that we will reopen any time soon.
"A combination of a protracted battle with the landlord and the limitations of the building have meant that, this morning, we had to take the horrible decision to lay off our staff.
“The final word has to go to all the staff who’ve worked here past and present, they made it their home and it just wouldn’t be Gatsby’s without them.”
It is not known how many staff have been affected by the closure.
Hundreds of people took to social media to express their shock at the sudden news.
One - later shared by the bar's social media page - said she had moved from Lebanon to Sheffield and had experienced her first night out in the popular venue.
Another said they 'couldn't imagine life' without the bar being open.