Time called on pub amid bank dispute
The owners of the Lamb and Lion Inn, Chris and Emma Watkins, took the decision to shut the historic pub on Monday.
A total of 23 full and part-time jobs could now be lost after the couple claimed they were unable to sign up to an "untenable" financial agreement with RBS.
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Hide AdMr Watkins said: "We are devastated to lose the Lamb and Lion and feel desperately sorry for the team who have worked so hard with us to make it a thriving inn.
"There is no doubt that we have developed a potentially profitable business with strong long-term prospects."
However, an RBS spokesman stressed that a financial package made available in August last year continued to be on offer. He said the decision to close the business had been made by Mr and Mrs Watkins, and claimed the couple had failed to make any repayments on outstanding debts since April last year.
Mr and Mrs Watkins bought the pub in High Petergate last year after its parent group, de Bretton Hospitality, went into administration.
The couple's other business, the Harvilles restaurant in Fossgate in York city centre, is unaffected.