The attraction in Old Hall Street in Hanley briefly reopened on Wednesday morning, but had closed again by lunchtime.

Stoke-on-Trent City Council told BBC Radio Stoke that the company operating the rink, Aria Direct, has ceased trading and that the attraction would not be reopening.

It is understood the workers have been paid a week's wages and sent home.

Legal notice

The city council said the shutdown was originally caused by a problem between Aria and its insurer.

Aria has since been threatened with legal action by the authority, which has helped to pay for the project.

A statement released by council on Tuesday said: "Aria have not responded to our requests to operate the rink by 1500 GMT today (Tuesday).

"Consequently, we have now served a legal notice on them requiring them to honour the contract.

Mayor questioned

"We remain hopeful that Aria will fulfil their promises, but the ball is firmly in their court.

"We will be monitoring the situation closely day-by-day and, if the rink fails to reopen, we will then be taking action for damages against Aria."

A council spokesman told BBC News Online that an estimated 1,400 people used the rink its first four days of opening, adding that those figures related to a period before the school holidays began.

The spokesman said the authority had spent �54,000 underwriting the project.

Stoke-on-Trent's elected mayor, Mike Wolfe, who helped to bring the ice rink to the city, has been asked by the council's scrutiny committee to explain how the shutdown came about.