A LEISURE company is still considering a city centre as a location for a drinking, eating and dancing establishment, despite being refused a liquor licence.

Luminar Leisure said it would consider its options after being refused a licence to convert Durham's former Palladium cinema and bingo hall, in Claypath, into a Chicago Rock Cafe.

Licensing justices backed police and local residents' concerns that the 570-capacity venue, although likely to be "well run", would lead to an increase in late-night disorder in Claypath

Luminar director Steve Dennis said the company might look at other sites for a style of venue he believes would prove popular for Durham's more mature drinkers.

He said: "We feel a Chicago Rock Cafe would work exceedingly well in Durham and would meet a lot of the requirements of a group of people who feel disenfranchised by what's there. Luminar Leisure has identified Durham as an ideal location for a Chicago Rock Cafe.

"We are not a company which just lies down and goes away, and should it be if we don't return to this site, we will look closely for an alternative location in the city."

Chief Inspector Laz Szomoru, police operations manager for the Durham and Chester-le-Street division, offered some hope to Luminar.

Although he believes Claypath is the wrong place for a Chicago Rock Caf - over-stretching police resources on weekend evenings - he said: "I want to emphasise that, to me, Luminar are a very responsible company and I would welcome working with them."

But Kirsty Thomas, who fought the Palladium licence bid in her role chairing Claypath and District Residents' Association, said: "A city that prides itself on having a World Heritage site has no need whatsoever for accepting a brand licensed entertainment venture simply because it's in many other cities in the country.