A popular seafront laser game venue has suddenly been forced to shut after a bitter legal skirmish.

Megazone at the King Alfred Centre in Hove was landed with a £35,000 bill after fighting eviction by Brighton and Hove City Council.

The centre, which opened in April 1993, applied to renew its lease in June last year but was told the terms had been changed.

A huge redevelopment scheme featuring three futuristic skyscrapers is due to start at the site in 2006 and the council wanted to ensure Megazone would move out when work started.

The centre's managers were unhappy with the terms of the contract and took legal action, which was lost on appeal.

Megazone closed on Thursday and owners say they may be now forced to sack 12 staff.

David Collinson, 43, from Hallchurch in London, who runs the venue, said: "We've paid £400,000 over the past decade in rates and entertained more than half a million people.

"The young people who come here do not have a voice - if they had a vote the council would not close us down.

"But the council has repossessed us, which means we have to close despite being quite happy to carry on trading.

"Our safety record is second to none and we even let the fire brigade train here.

"We've had a legal battle and the costs are being negotiated but the outstanding figure will be settled."

The closure follows a Court of Appeal ruling in May that the council had the right to take over the building.

Judges ruled the council could take possession immediately but officers gave the firm three months' notice to allow Megazone to find a new venue and give notice to staff.

The council was concerned when Megazone failed to wind up the business, fearing the order had not been taken seriously.

A spokesman said: "We were seeking to negotiate flexible arrangements to ensure Megazone left quickly when any development started.

"When we put these ideas to Megazone they made a number of demands, one of which was an attempt to get us to hand over a very large sum of taxpayers' money.

"We could not negotiate on that basis. A judge at the Court of Appeal said in May their case had no merit. Since then they have failed to pay taxpayers £35,000 they owe in court costs."

Visitors to Megazone at the weekend found the doors locked and callers were greeted with a recorded telephone message.

The company has promised to compensate everyone who has made bookings.

The final plans for the King Alfred redevelopment are being drawn up by developers Karis/ING.

They include a £26 million sports centre and 354 flats in three 17 to 20-storey towers.

Architects Frank Gehry, who designed the Guggenheim Museum in Bilbao, Spain, and Piers Gough have both worked on the design.