Council officials in Magaluf, Spain have ordered the closure of the bar where a British girl was filmed performing sex acts on 24 men for a cheap cocktail.
Local police say they have identified Playhouse as the bar where the video was taken.
The owners of the bar have been hit with a £43,500 fine they have been told to pay with controversial entertainment firm Carnage.
Both Playhouse and Carnage have also been told they must shut for a year unless they can successfully appeal against the council decision.
The pair, formally notified on Thursday, July 24, 2014 of the fine and closure orders, have been given 15 working days to appeal.
A council spokesman said: ‘The town hall has shown it is acting in a scrupulous legal fashion.
‘We’ve acted only when a full and conclusive police report was in place.
‘We haven’t acted on the spur of the moment based on the sole evidence of a video posted on the Internet.
‘I think the message is clear. The town hall won’t tolerate activities of the kind featured in the video under any circumstances.
‘We will use all the laws we have available to us to ensure there is no repetition.
‘Playhouse and Carnage now have 15 days to defend themselves and I am sure they will do so because a 12-month closure could make anything think about closing up permanently.’
The spokesman added: ‘There’s nothing to stop Carnage opening up again under a different name if the council decision prospers.
‘But if they chose to do so they’ll have to be aware of what they’re up against.
‘A lot of bars and hotels they have been working with might not be so keen to work with them in the future.
‘The fine of €55.000 euros is a joint fine they can pay between them but the closure orders affects them both for the full 12 months.’