One of Dundee’s oldest pubs and restaurants is to be knocked down to make way for a multi-million-pound care home later this year.
Staff at the Cambustay, on Dalhousie Road, Broughty Ferry, were informed of the decision on Sunday, believed to be sparked by financial problems.
The building will then be demolished and converted into a care facility for people with dementia.
The pub has been open since the 19th Century, with official records dating back to the 1850s. It appears on some of the earliest maps of Broughty Ferry properties.
David Coutts, a spokesman for Care UK and Reid Properties, said the pub was no longer fit for purpose.
He said: “It is with regret that Reid properties, the owners of the Cambustay Hotel and Restaurant presently announce it will be closing shortly due to financial difficulties.
“The Ferry has seen a lot of new bars and restaurants in recent times and we can no longer make the Cambustay Hotel work profitably and have no option.
“We would also like to thank the people of the Ferry for loyal custom over the years.
“All that said we are delighted to introduce Care UK to the Tayside market place for their first local venture.
“Subject to gaining planning consent from the local authority we intend to create a first class care facility, in what will be our first new home in Tayside.”
Rumours of a closure had been circulating for a number of months, however staff had previously assured customers that the eatery would remain open.
Despite this, the business was de-listed by its previous owners Vintage Inns on the firm’s official website in recent weeks.
It is understood the pub will be closed in the coming months.
Mr Coutts added: “The Cambustay is an ideal location for this purpose within a beautiful setting.
“We will use local labour to run the care home and prioritise local companies for demolition and the building of the home.
“In total we will create places for up to 70 adults and be spending over £10 million pounds in the construction.
“We look forward to working with the council and local community to facilitate this much needed facility.”
One frequent customer at the eatery said: “We’re going to lose our knitting club place.
“It’s just a shame for it to shut.”