Oxford businessman Clinton Pugh has closed one of his restaurants just days after the city council threw out conversion plans for a third time.

Mr Pugh, who owns a number of venues in the city, applied for planning permission to demolish the Lemon Tree, in Woodstock Road, and replace it with housing.

But councillors said his proposals were "obtrusive and incongruous", which forced him to think twice about keeping the restaurant open while he and his team of architects went back to the drawing board.

Mr Pugh said: "I know the Lemon Tree is popular and I'm hugely grateful to all the people who have formed such a loyal fanbase, but I was needing to make £27,000 a week just to break even, so it was proving impossible.

"The staff have been doing a sterling job, but it was becoming so hard battling against the negativity of people knowing I wanted to close the restaurant. It was a struggle. I love the Lemon Tree, but it was very hard to make it work. The councillors' decision added an extra blow."

Mr Pugh hoped to build eight two-bedroom flats and a four-bedroom house on the site.

He said: "My vision doesn't seem to be the same as everyone else's. We have changed the plans twice before but will redesign them once again. This has been going on for 18 months now."

Mr Pugh, who owns three outlets in Cowley Road - Cafe Coco, Kazbar and the Oxford Organic Burger Company - as well as the Grand Cafe in High Street, will soon open a second Cafe Coco in Frideswide Square.

He said it would open its doors in the next six to eight weeks.