THE owner of a Hereford bar says he is the latest business to be hit by the changing spending habits of drinkers.

Spirit, based in Union Street, will be closing for good on February 9.

Owner James Smith claims that changes brought in as a result of the Licensing Act 2003 has hit the late-night economy in Hereford hard.

"There is now a whole generation of people who now do not come out until much later, which is massively affecting our business," said James, who bought Spirit in 2001.

"People now start drinking at home before going out and just go to one or two pubs before going to a nightclub."

James said the price of alcohol in supermarkets has also had a big effect on trade.

"We had a regular customer base, but the dynamics have really changed and people only go to Bar Spirit for one or two drinks," he added.

"Some businesses will change their dynamics and stay open until 2am, but that's not for us."

A "closing down sale" has started at the venue where prices will be reduced up until it closes for good.

James confirmed that the venue will be put up for sale.