The keys for Unity Works have been handed back to the landlord after nobody was found to take on the current leasehold.
Hopes were raised earlier this month that a buyer had been found after an auction for the venue’s equipment was cancelled because of auctioneers said there had been a ‘sale of the business’.
But the administrators, Begbies Taylor, said that due to the complex nature of the lease and a build up of rental arrears, it was not possible to find a buyer.
They said: “Whilst it will be disappointing for the company’s creditors that there has proven to be no value in the leases, all marketing avenues have been exhausted.
“Therefore, handing back the keys is the correct course of action and will give the incumbent tenants some security about the future of the building.
“To this end, Unity Hall and Business Space Limited will take over the running of the building.
“This is an entity controlled by the people behind the successful Establishment Bar which already operates within Unity House.
“In addition, we understand that Unity Hall and Business Space Limited plans to bring back conferencing and look to expand the leisure activities at the building with a view to making best use of Unity House for the residents and businesses of Wakefield.
“Free from the historic difficulties faced by the company, the future of the building appears more stable.”
The Westgate venue was put into administration in October because of mounting debts.
It owes hundreds of thousands of pounds to dozens of companies, many of which are based in Wakefield.