A YORK based entertainment company which runs attractions across the UK has announced it is closing one of its loss making sites.

Paragon Entertainment is closing its Quest adventure playground in the West Midlands-based Merry Hill Shopping Centre after it posted losses of £90,000.

Paragon said it has exercised a break clause in its lease at Merry Hill, which will see the the site close in six months.

Chief executive of Paragon Entertainment Mark Pyrah, said: "Sadly, the trading position at Merry Hill, due to the low footfall in the Quest location within the mall is simply not sustainable.

"The imminent major redevelopment at the Centre, since it was taken over by Intu Properties in May this year, coincides with a break opportunity in our lease and, for commercial reasons, we have elected to exercise that break.

"Quest at Merry Hill has been a valuable test bed for the company and our future relationship with Intu Properties.

"The board is hugely grateful for the past and continued efforts of the Quest staff and management team, and the loyalty from over 200,000 happy visitors who continue to enjoy great family entertainment at Quest."

The attractions equipment installed at Merry Hill has been written down to a realisable value of £118,000, which the board says reasonably represents fair value, so they are not intending to make any further impairment at this stage.

Paragon says it expects to incur losses at Merry Hill during the six month notice period of approximately £110,000 which the board is satisfied is less than the cost of immediate closure.