Funding for Fishguard's Theatr Gwaun to end in March
Funding for a council-run theatre and cinema complex in Fishguard is to stop in March.
Pembrokeshire council cabinet voted unanimously to end support for Theatr Gwaun after hearing it was making annual losses of more than £60,000.
A 2,900 signature petition calling for it to be saved was handed in.
Talks with volunteers who want to take over running the building as a community enterprise will continue.
A report before Monday's cabinet meeting said on average just under 42 customers attended each performance at the 186-seat venue.
Losses have exceeded £60,000 for the last five years and were more than £82,000 in the last financial year.
The Friends of Theatr Gwaun (FOTG) believe with improved marketing, volunteer support and additional money-generating facilities such as a bar they could eliminate the losses within three years.
They had been offered the building a peppercorn rent but had asked the council for money to help fund the transition.