Significant changes are coming to the Pier as Penarth Arts and Craft Ltd (PACL) surrenders its 125-year lease of the Pavilion.

Fears of financial unviability predate the pandemic, but the events of the last year have served as a catalyst for the charity's demise.

The asset will now fall back into the hands of its owner, the Vale of Glamorgan Council.

Details of the handover are currently unclear, but Nub News can confirm that the Waterloo Tea cafe will not reopen.

The council have assured that they will honour all existing bookings, such as weddings booked prior to the pandemic.

Council officers have prepared an extensive press release addressing the handover, but they say they cannot publish it until the agreement is finalised between them, the PACL and the National Lottery.

In 2013, the PACL oversaw a £4.2m renovation of the building funded by the National Lottery and the Vale Council.

Speaking to Business Live, a spokesperson for PACL and Penarth Pier Pavilion (PPP) Ltd said: "This decision has been taken following a long period of challenging trading conditions.

"Whilst informal proposals were submitted to PACL for the commercial running of the pavilion they have proved incompatible with PACL's charitable mission, the terms of the lease from the Vale of Glamorgan and the arrangements with the lottery bodies.

"As a consequence the remaining directors worked with the Vale of Glamorgan Council, the National Lottery Heritage Fund and National Lottery Community Fund to forge a solution that will allow the pavilion to continue to operate as a venue for the people of Penarth and the wider community."

More to follow.