THE Grimethorpe Miners' Welfare Scheme has become the latest victim of the credit crunch and is expected to go into receivership.

The club closed on Saturday because of falling profits and it is thought eight people will lose their jobs. Former secretary Tony Devoy took voluntary redundancy in April after three years to try to keep the club afloat.

But he said: "It has closed and gone into receivership. We had a meeting and the receiver has been in and put all the procedures in place."

Tony said the club was about 100 years old and had about 3, 000 members at its peak but this had dropped to about 500.

The scheme is used by sports teams and community organisations such as football, rugby and cricket teams, Grimethorpe Amateur Boxing Club and St John Ambulance.

He said the bar had not been making enough money because of cultural changes, the smoking ban and the economic downturn.

"It's a sad and tragic day."

Head trustee Dave Rix refused to comment but Coun Dave North: "It's such a shame after all the years it has been there. It's a sad day and it will be a disaster if the sports teams and other groups can't use it."

Tom Davies, of accountants Auker Rhodes, said: "We are due to have a creditors' meeting on March 5. It looks highly likely we will be dealing with it although we have not yet been appointed."