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Hundreds of children face disappointment after a popular soft play area in Whitfield was forced to close.
RVs Fun Factory, in Honeywood Close, Whitfield, announced on Monday that the landlord “changed the locks without any communication”.
Staff were said to have been given only minutes notice that their jobs were lost and party bookings are being refunded.
In a statement, business owners Ruth Clist and Vanessa Tibbles said: “We were totally in the dark as to what had happened.
“We didn’t know until Saturday morning, when we couldn’t open for business.”
RVs were told that it had breached its lease by not paying quarterly and “peaceful possession” had been taken of the premises.
'We are totally gutted that RVs has ceased trading...' - Ruth Clist and Vanessa Tibbles
“We are totally gutted that RVs has ceased trading and the parties we had booked and deposits we took for those will be refunded,” it said.
“We loved the fun factory and the many happy years there.
“Sadly, we are in total shock that this has happened.”
The statement said an American investment company bought the unit in September 2014.
It was claimed that the rent doubled and that it needed to be paid quarterly in advance.
The pair found this “impossible to do” and were told the building is now being earmarked for another use where they can get "higher rents."
The Facebook post has been shared more than 650 times and many parents have expressed concern.
Mum Jen Curtis said: "We had a party booked after booking weeks ago and found out Saturday at midday that they were going to shut.
"The reason given was 'structural'.
"We then had 24 hours to arrange a party for my seven-year-old."
The Mercury contacted Ms Clist and Ms Tibbles but they had not responded when the paper went to press yesterday (Wednesday).