Former owner and head chef Travis Ray said a lack of customers was to blame. 

"We weren't getting enough people through, so we sold up," Mr Ray said. 

"I still wanted to keep cooking, but I didn't get enough customers."

Mr Ray, who has since moved to Jackson's and Co as head chef, said the location was also a problem. 

"Its location was quite distant in Camp Street and further away from the main restaurant strip," he said. 

Last year Phoenix Brewery received a high commendation at the Golden Plate Awards. 

It also scored a mention in the 2013 Age Good Food Guide. 

Mr Ray purchased the business from restaurateur Andrew Flockart two and a half years ago.

Golden City and Western Hotel owner Simon Coghlan owned Phoenix Brewery prior to that. 

Mr Coghlan still owns the Camp Street building and plans to open a new restaurant in March. 

However the Ballarat businessman was remaining tight lipped about the venture. 

"We're still finalising the details, but we have a new restaurant that will bring back the dining experiences you can get in Melbourne," Mr Coghlan said. 

In December Ballarat Real Estate was asked to remove the $110,000 listing for the restaurant from its website.

Building owner Mr Coghlan said this was because the property couldn't be sold if it wasn't trading as a business. 

"You can't sell something that's not trading as a business," he said.