Blaze flood damage forces Liquid Room to shut down for a year

The Victoria Street venue was badly hit by flood damage following the fire, which completely destroyed Khushi's restaurant. Alternative venues have been found for all forthcoming gigs.

Meanwhile, the owners of Khushi's said they hoped to open a new restaurant in the city within two months, as they continued to count the cost of the blaze.

The converted church housing the restaurant on Victoria Street was devastated by the blaze on Friday night.

Loss adjusters and council building control officials are only now beginning to assess the extent of the damage.

Lothian and Borders Fire and Rescue is investigating the blaze, but said it is too early to say how it started.

Dhaneshwar Prasad, manager of the Khushi's branch in Dunfermline, said they were already looking for alternative buildings. He said they had been overwhelmed by the support from customers.

He said: "There will definitely be a Khushi's in Edinburgh by the end of February. We don't want to let our customers down. We've got a lot of bookings for the next few months. Every day we have had a huge volume of calls."

He said they had already had several meetings to discuss potential buildings, but had not yet made a decision.

Kath Mackenzie, events manager at the Liquid Room, said they expected to be closed for up to a year. The building was badly damaged by gallons of water used to extinguish the fire, causing the ceiling to collapse.

The managers of the Picture House venue and Faith nightclub have stepped in to offer alternative venues for live gigs and club nights. No events are being cancelled, and all the staff have been found alternative work over the festive period.

Ms Mackenzie said: "This has been absolutely heartbreaking. There were a lot of tears shed. This is the worst time of year for something like this to happen. A lot of people's livelihoods are at stake.

"The internal structure is completely collapsed. The ceiling is on the floor. The water has subsided, but there's still about a foot on the floor. Everything is saturated – it's still running down the walls."

But she said they were determined to reopen the venue as soon as possible and ensure events went ahead.

A planned gig by The Rezillos was switched to the Picture House last night, along with The Lost Soul Band on Sunday and Bad Manners next Tuesday. Manager John Stout said all tickets would be valid at the new venue.

Historic Scotland is working with the city council to assess the damage to the B-listed building.

A spokeswoman said: "This was a major fire in the heart of the historic Old Town, and the fire services have done a fantastic job in protecting the public and containing the blaze within the shell of the damaged building.

"Victoria Street is a key set piece in the Edinburgh World Heritage Site. We will work closely with the council to advise on the way forward."