The well-known student bar at Athlone IT - Scribes - closed its doors on Friday last.
In a statement, the Institute's students union (AITSU) said the decision to close the popular student hub had not been taken lightly and was due to difficult trading conditions.
"This decision to refocus this social space was taken by the Board of Directors upon which AITSU has two representatives," said students' union president Daniel Coulter.
"The decision was not taken lightly. Scribes has been an institution within AIT for many years. However the trading performance of Scribes has weakened significantly over the past two years.
"AITSU did everything in its power to help generate business for Scribes this year in the hope that it could be reinvigorated through big events such as freshers’ week, rock the hall, rag week, theme nights and many other parties.
"Unfortunately, the trading conditions for Scribes remained difficult and continuing to trade ultimately became unsustainable," he said.
"AITSU would like to wish the staff of Scribes all the best in the future. It is a sad occasion for all involved to see the doors of Scribes closed."
Mr Coulter said the campus space which housed Scribes would soon have a new use.
"While saddened at the closure of Scribes, I am pleased to confirm that the space will be rejuvenated as part of a new student social hub development.
"This new hub will be for all students and AITSU with the input of the student body will endeavour to cater to the needs of the widest possible range of students. A commitment has been secured from the management of Athlone IT to fund this project.
"Doubtless there will be some frustrations in the interim. Nonetheless the programme of redevelopment will have the students’ interests at heart," he said.