Peggy's nightclub on Douglas promenade will close this autumn.
The announcement was made on social media last night.
Owners say they want to leave in their "prime with heads held high".
The popular Douglas venue, which started as a pop-up in 2018, will close on 2 October.
It is the second bar in the Isle of Man to close this month.
On 9 August Bar Logo in Ramsey announced it was shutting with immediate effect after being hard-hit by the pandemic.
Car falls down steep bank on Mountain Road
Multiple emergency services were called to a car crash this morning on the Mountain Road.
Panic over - Mcdonald's reopens at 11am tomorrow
After weeks of withdrawal symptoms, you can finally be reunited with McNuggets.
Police say beat it to cars illegally parked during MJ tribute act
Theatre-goers in Douglas were met with fines on their cars last night, following a show at the Villa Gaiety.
No dedicated prostate cancer screening programme, despite over 1,200 referrals
The Isle of Man doesn’t have a dedicated prostate cancer pathway.
Minister says GP waiting times have improved, but delays still impact A&E
The average wait to see your GP is 7.4 days according to the Health and Social Care Minister.
Crash closes section of the Mountain Road
Police have closed a section of the Mountain Road this morning due to a crash.
Island's prison nears full capacity
The Isle of Man Prison is operating close to full capacity, with almost 90% of available spaces currently occupied.
Beach hut owner praises youngsters for owning up to break-in
A Port Erin business owner has spoken out after one of her beach huts was broken into earlier this week.
