Staff have been left high and dry after a music venue closed owing 500,000.

All those working at roots.net in Park End Street, Oxford, were told that it was closing after legal advice - and they were losing their jobs with immediate effect.

In a further blow, managers of parent company Roots Leisure Ltd told them there was no cash left to pay any wages they were due. In a letter to staff, director Tony Gresswell said: "It is clear that at the present time there are no funds left to make payments to creditors or staff, although we have tried to look after staff wages as much as possible up to now."

He said he andJohn Brimble, the co-owner of Hinksey Heights Golf Club, had drawn no income or expenses.

The letter continued: "We indeed have suffered the heaviest losses of all in our attempts to sustain the business by putting in our own money.

"Delays and cost overruns in bringing both venues, Golden Bough and Wood of Faces, into operation, due mainly to problems of the building itself and the very heavy requirement associated with Health and Safety and licensing, have in our opinion been substantially responsible for the present situation." Mr Gresswell said he believed some staff had been paid up to date, but he was not hopeful of there being sufficient funds to pay any outstanding wages.

He said: "We did employ a lot of part-time staff, in bar work and security, and we are still gathering claims."

He said it was possible other parties might attempt to revive the venue.