A company which hoped to turn Denbighshire's Ffrith Beach festival gardens into a major tourist attraction has gone into administration.
Ffrith Leisure has leased the Prestatyn site from Denbighshire council since 2007, and employs 50 people there.
In a statement, the council said the building, which has a bowling centre, funfair and play areas, was still operating as a going concern.
The council said it would work closely with the administrators. In a statement, the local authority said it hoped the site could be sold to preserve some of the jobs.
The statement added: "Denbighshire confirms that we own Ffrith Beach and Ffrith Leisure Ltd leases the building from us.
"We are concerned and saddened by the news that Ffrith Leisure has gone into administration.
"We will be working closely with the administrators, Hodgsons Chartered Accountants of Manchester, who have confirmed that it will be business as usual at the site." Ffrith Beach saw thousands of visitors in the 1970s, but later ran into financial problems when a plan to create a new festival garden failed.
From BBC Wales North East
http://news.bbc.co.uk/1/hi/wales/north_east/7867199.stm
Pictures from the 2008 season can be found here:
http://nwst.blackapplehost.com/ffrith/