OXFORD'S premier live music venue The Zodiac has been sold to a major national club chain, ending months of speculation over its future.

The Cowley Road club, which has remained fiercely independent for 11 years, has been snapped up for an undisclosed fee by the Academy Music Group (AMG) - which owns a string of large venues, including London's Shepherds Bush Empire and Carling Academy venues in six cities.

The Zodiac has become one of the group's three so-called Bar Academy sites, along with venues in London and Birmingham.

The club will continue to be known as the Zodiac for now, though will inevitably be branded an Academy in the long-term.

The Zodiac was set up by musicians Nick Moorbath and Adrian Hicks in 1995 and has hosted gigs by everyone from The Killers and Razorlight, to Oxford legends Supergrass, The Young Knives, and Radiohead - members of whom once had a financial interest in the club.

The Zodiac's new owners insist, however, it will be business as usual, with the venue continuing its role as a focal point for new music. It is also thought that the deal will pave the way for a planned refurbishment and extension programme, which would see the creation of a new bar at the front of the building, an expanded 900-capacity downstairs venue and a stylish seating area upstairs. Although AGM refuse to comment on the expansion plans, it is thought the revamp could begin as early as next year.

The sale was welcomed by AMG's Chief Executive Officer John Northcote - a former Oxford resident who began his career by running Sunshine Records on Little Clarendon Street.

He said: "Having grown up in Oxford, it's a very special city for me and it's also where I started in the music industry. I know just how important venues such as The Zodiac are to both the local and national live music circuit and we plan to work closely with promoters and agents to continue to build upon The Zodiac's reputation and success over the past decade."

Former joint owner Mr Moorbath said: "After 11 years running and building up The Zodiac, Adrian and I feel it's time to move on. It has always been important to me that The Zodiac remains a live music venue and that's what AMG are all about."

Mr Moorbath will continue to book bands for the Zodiac, and other venues in Oxford and Reading, alongside the Zodiac's principal promoter, Alan Day of TCT Music.

Commenting on the deal, Mr Day said: "I am looking forward to seeing improvements at the venue, and working with the new owners, to continue bringing great bands to Oxford."

There were fears that the sale of The Zodiac could hit the scores of local bands who rely on the venue as a performance space. But AMG insist they will retain the strong links between the club and the grassroots Oxford music scene. Spokesman Louise Kovcs said: "Academy Music Group will continue to trade The Zodiac as normal in the interim, with its busy and successful diary of shows and events.

"Developing and nurturing new talent is paramount to our business. We run local band nights in many of our venues, independently and with local promoters to offer new artists the chance to play in a professionally run space. Utilising the experience of our team and agents and promoters in Oxford, we look forward to taking the business forward."

The venue's new general manager is Carl Bathgate, previously based at the Carling Academy Birmingham.

Steve Forster, AMG's Group Operations Director, said: "Carl has vast experience of operating multi-site venues. He is a respected promoter in his own right and has a proven track record of commercial success."