There has been mixed reaction to news that the Pálás Cinema in Galway is to close at the end of February due to ongoing financial losses.
In a statement, the Light House Cinema Group described the situation as "stark".
It said the decision follows months of engagement with stakeholders to try to save the venue.
The art house cinema had been in operation for seven years, but the project has been dogged by setbacks spanning two decades.
The Pálás Cinema goes back as far as 2004 when a site was provided by Galway City Council just a short distance from the Spanish Arch.
Read more: Galway's Pálás Cinema to close due to financial losses
But the project has faced significant challenges over the years and the opening was delayed time and again due to structural issues, an economic downturn and cost over-runs.
The cinema eventually opened seven years ago when Element Pictures agreed to run the operation under a lease agreement with the council.
By then the Picture Palace had incurred losses of €8.5m of public funds.
It was a divisive issue in Galway City Council with Fianna Fáil's Mike Crowe one of the most vocal critics.
He said it was his understanding that the building would be taken back into public ownership.
"At the time million after million went into this cinema and it just seemed to be a big hole for money in the city. But it's something that's done, that's been built now and the question is what happens next," Mr Crowe said.
"My understanding is it reverts to Galway City Council but we now need a plan for 2025 to see what the future is for that building. I honestly believe it's a huge component for arts in the city and I think that needs to be examined thoroughly and perfectly."
In its statement, the Pálás team said it was committed to facilitating an orderly transition of the building to its owners, Galway City Council.
The Picture Palace was designed to bring the very best of arthouse cinema to Galway.
The sleek architecture houses three screens along with a restaurant and bar.
It was a cultural space to host festival events and quality independent and mainstream films from home and abroad.
However, the cinema continued to operate at a loss, not helped by the Covid pandemic.
But many in the Galway arts community believe there is still a future for independent cinema culture in the city.
Assistant Professor of Film Studies at the University of Galway Seán Crosson said he hopes the city will embrace the need for an art house space.
"The Pálás Cinema was the fruits of incredible efforts by a lot of people in Galway and I think it had an important role to play.
"There continues to be a need for an arts cinema in the city and I hope that the State, the various stake holders, the city council, the relevant government departments, Screen Ireland and the film community can come together to ensure that there is an art house space available for the city and the West of Ireland."
