Mark and Belinda Leppington are leaving the Crown Tavern on Scalby Road after three years of running the well-liked tavern.
They said on social media that they have handed the pub back to its brewery - Marston’s - as they feel its viability is “not what it was”.
“We would like to thank all customers for their loyalty during our three-year tenure and hopefully you could see what we were trying to achieve.
“We are leaving on May 14.
“Once again, thank you all for your support and please keep your eyes peeled for our next venture.”
As reported by The Scarborough News in December, Belinda Leppington applied to Scarborough Council to transform the old Falsgrave County Modern Girls School building in Falsgrave Road into a drinking establishment.
The building, known as the Clock Tower and most recently home to Bed King bed shop and warehouse, is located in one of Scarborough’s busiest areas but has been empty for more than three years.
Mrs Leppington said the bar “would be the only privately and completely free of ties public house in the Falsgrave area which would enable us to source locally brewed drinks for the enjoyment of customers”.
The planning application has yet to be decided by Scarborough Council.