The owners of Fifty, the high-roller casino and private members’ club in London patronised by Mike Ashley and Cheryl Cole, have decided to throw in their chips and put the business into administration.

London Clubs International (LCI), which owns the historic St James’s Street venue in a joint venture with Robert Earl, the Planet Hollywood entrepreneur, is expected to ask a court on Monday to rubber-stamp the appointment of administrators to the loss-making business.

The move follows the failure of protracted attempts to sell the business, which has suffered volatile trading. In recent weeks LCI had been holding detailed negotiations over a sale to Timori Kartchava, a Russian businessman and well-known high-roller, for between £8 million and £9 million.

In a letter to members, LCI said: “We have explored and considered all alternatives but it is clear that, despite the best efforts of the management, the only option is to call in administrators.”

It said that the restaurants and bars would continue to trade as normal, but the gaming floor, which suspended its operations almost a month ago, would remain closed.

One of the problems with its attempts to sell the business appears to have been the decision six years ago by LCI to dispose of the freehold of the property in a £25 million sale and leaseback.

It is believed that the freehold changed hands again a few months ago, with a consortium of Russian investors paying an estimated £45 million. The new owners are said to have no connections with Mr Kartchava.

Like the freehold, the gaming licence will be unaffected by the impending administration of the operating business. It is understood that when it set up the joint venture with Mr Earl, LCI, which is owned by Harrah’s, the American gaming behemoth, retained the licence under separate ownership. Its options include selling the licence or moving it to a new premises in Westminster.

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