The owner of a bar in Happy Valley-Goose Bay is blaming its closure on the provincial government's new indoor smoking ban.

Rumours night club shut down last week after serving customers for nearly 26 years.

Smoking inside bars and lounges has been illegal since July 1 (file image).

Owner Mike Lethbridge says there was a dramatic drop in business after the new smoking regulations came into effect this summer:

"After the smoking ban, it was like somebody turned on a light. It was just nobody there – absolutely nobody," said Lethbridge.

Before the ban, Lethbridge says he employed eight people each Friday night.

After the ban, Lethbridge dropped the number to three.

"Last Friday night, we had two staff," he said.

The Beverage Industry Association says four other bars across the province have shut down since the ban came into effect July 1.

• FROM JUNE 30, 2005: Bar owners brace for smoking ban

The provincial Alliance for the Control of Tobacco says it regrets the layoffs, but executive director Kevin Coady says the health of people – not businesses – is its top priority.

"In no way is it our intention to hurt people – this is all about protecting people."