Three bars on a short stretch of Bristol's waterfront now stand empty after the closure of Chicago Rock, whose owners have slumped into administration.

The dockside nightspot, which has been serving customers next to the Watershed media centre since the 1990s, is yards from the boarded-up Baja Bar and recently closed The River bar.

Dick Penny, managing director of the Watershed, and John Hirst, operations director for Destination Bristol, believe the closures could spell the end of the waterfront area being used as a strip for bars and nightclubs.

Chicago Rock, which employed 39 staff, shut down at the end of last month after its owners the 3D Entertainment Group Limited went into administration, blaming the economic downturn.

Some 31 of the company's venues across the country continued trading after being bought by another company and discussions are being held over the future of the remaining 19 bars, including the Bristol venue.

The River, next door to the new Tourist Information Centre, closed in January and Baja Bar closed in 2008. Mr Penny, whose company Watershed Arts Trust Limited holds the long-term lease on the E Shed and W Shed buildings occupied by Chicago Rock and The River, said: "It certainly says that what was here before wasn't sustainable.

"What had grown up over the last 10 years was a monoculture of bars. But what makes any environment healthy is diversity.

"While it's unfortunate we have closed premises, it offers an opportunity for some renewal. We are keen to have a bit of a mix and the for the area to become a vibrant place used not only in the night but in the day as well.

"We also want it to become a lively place for younger people and older people.

"But at the end of the day, it's down to who has a viable business and it's difficult to control what happens."

Mr Penny said he expected the Chicago Rock site, which was refurbished last year, to reopen soon and a local business to take over The River premises by May.

Mr Penny added: "No one designed it to be all bars, it's just the way it went. The pendulum swung one way and it's starting to swing back a little bit. Over the last decade, the investment in places like College Green, Anchor Square and Queen Square has really improved the environment around the docks and we need to make it top quality for everyone. I'm delighted the tourist centre is now here."

Of Baja Bar and The River, Mr Hirst said: "We have some exciting proposals and lots of interest in taking over these particular premises.

"Nobody likes to see things close down but we see it as an opportunity. We want to make the Harbourside appealing to everybody and it doesn't necessarily mean that when one bar closes another one opens."