Harry Ramsden's is quitting its fish and chip restaurant in Oxford less than 18 months after it opened.
The world-famous fish firm says its restaurant and takeaway in St Ebbe's has failed to attract enough customers.
A pub chain has applied for planning permission to turn the building into a bar and restaurant. Meanwhile, Harry Ramsden's is looking for an alternative site in Oxford.
Director Richard Richardson said: "We have received an offer from a pub chain but we have not made a final decision on whether that will be accepted.
"We have found that we like Oxford and our brand has been well accepted, but we thought the evening custom in that location would be better."
Mr Richardson said the Bhs development was one reason for the restaurant's lack of success. "The works have completely clogged up that area. We are looking at one or two sites on the outskirts of Oxford instead."
Harry Ramsden's, which owns the world's largest fish shop in Guiseley, near Leeds, opened in Oxford in March last year.
London-based pub chain Grosvenor Inns has submitted an application to open a Slug and Lettuce pub on the site. A drinks licence will be considered by magistrates.
The 25-30 staff at the restaurant were told about the plans about four weeks ago. Manager Matthew Almond took over a month ago.
He said: "We have been losing money. It has had more than its fair share of problems over the last year and a half and it is only a last resort to go down this avenue.
"This site has not worked for this particular restaurant. The Bhs development has obviously not helped."
Harry Ramsden's eating parlours are famed for having the same old-fashioned decor as the original 1928 restaurant and for frying in beef dripping.
Maureen Christian, chairman of the city planning committee, said: "It is always a pity when somewhere closes, but I am particularly disappointed that it could change from a restaurant to a pub. There are a lot of pubs in that area already.
*Doomed from the start: See Features
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