The Royal British Legion Club in Newquay closed permanently on Sunday after becoming insolvent.
The committee said that “bad publicity” and “bad mouthing” of the RBL club, based at Trevena Terrace, had affected income over recent months and led to spiralling debt.
It added the rising cost of gas, electricity and other resources had also put the club under “severe pressure.”
RBL club chairman Jon Goodman and the rest of the committee resigned at a recent meeting to allow those who disagreed with the way the club was being run to step forward and form a new committee, but there were no takers.
Committee officers agreed to remain in place to help with the closure of the club despite their resignation.
A spokesperson for the committee said: “The club has been struggling for a number of months.
“The bad publicity and bad mouthing of the club has affected the income over recent months.
“Coupled with the rising cost of gas, electricity and other resources has put the club under severe pressure.
“The committee have resigned to allow those who disagree with the way the club is run to step forward and form a new committee.
"No one has done so thus far and it is now too late.
“Although the committee have resigned, the officers remained in place to help with the closure of the club.
“At midnight on Sunday 10th/Monday 11th the club has now, after much hard work by the volunteer club committee, become insolvent which means it is illegal to trade and the club must act within the boundaries of the law, which it has done under the present committee and chairman.
“Bailiffs for one debt came in on Friday and it was dealt with within an hour.”
The RBL club meeting where committee members resigned en masse was described as "acrimonious” and resulted in people walking out.
A source told the Voice: “The RBL meeting was a cross between Monty Python and a Victorian Melodrama.
“Members now drink in the Belmont Club, Newquay Rowing Club, the Newquay Institute and the Cheltenham Club. All these clubs have benefited with extra members.
“The RBL has to take £15,000 a month to cover bills and it’s not doing that.
“In three and a half years they have trashed it. I’ve been going to the RBL since 2004. It’s such a shame.
“The club is a dead parrot that is pushing up daises.”
The Newquay Branch of the Royal British Legion continues.