It is understood around 50 people are employed at the business which was officially opened in May 2023 by a host of world rugby stars.

The IRE stated on Thursday evening that its “intention was to gift this architecturally significant, award-winning building to the State and in so doing help with visitor footfall to Limerick city centre” but that its negations with Limerick City and County Council on the matter could not be progressed.

“This gift offer, along with a €1.2 million donation, was made to Limerick City and County Council in October 2023, with Heads of Terms signed by both parties in March 2024,” the IRE stated.

“The proposed offer would have seen the building free to be used for any civic purpose by Limerick City and County Council after 2028.”

It said the entity being gifted “is entirely debt free” but it was “unable to advance the process with the Council and so have taken the difficult decision to close the business”.

The IRE said it would honour “all existing bookings for the venue” up to December 23, including “visits to Santa’s Secret Workshop and other booked events”.

“The doors will close permanently from that date and no new bookings are being taken with immediate effect. Bookings for subsequent dates will be refunded in full,” it said.

“The experience has brought over 60,000 visitors to the city centre since it opened and has delivered an estimated €7.8 million boost to the local economy in that period.

“This project was a not-for-profit charitable venture and was constructed and delivered without state support, funding or grant aid.”

The IRE thanked retired Ireland rugby stars Paul O’Connell and Keith Wood “who have been unselfish in their fantastic assistance to the project since the concept stage” and its “wonderful staff, and the people of Limerick and beyond, for supporting the venture and the effort to help to bring life back to the city centre”.

In response, Limerick City and County Council said it was “disappointed”.

“We want to assure the public that every effort was made to secure the proposed transfer of the International Rugby Experience into Discover Limerick DAC, the Council owned tourism company that manages other Limerick attractions including King John’s Castle,” the council stated.

“Following extensive due diligence, a detailed briefing was provided to the councillors of Limerick City and County Council, as recently as this week, to discuss the proposed transition. All possible avenues were explored including a report from an independent tourism expert consultant.”

“Despite our best efforts, we were unable to secure a viable path forward as substantial operational and capital funding would be required from the Council into the future.”

The building remains in the ownership of horse racing mogul JP McManus who owns a string of other properties including the five star Adare Manor hotel and spa resort which is to host the Ryder Cup golf tournament in 2027.