Stitch and Weave, which is due to open on March 1, is situated in the canteen of the former Ebrington military barracks.

The owners say they had made a “seven figure investment” in the 80-seater restaurant, which has spectacular views of the city’s Peace Bridge.

Owner David McElhone said: “It is an exciting project, we are very excited and it’s been a long time coming.

“The building itself is absolutely beautiful, right in the corner of Ebrington Square overlooking the Peace bridge.

“We couldn’t be more blessed to have a building like this.

He said the restaurant would employ between 25 and 30 people.

Ebrington’s development is widely regarded as a key to the economic growth of Derry and the region and is the largest regeneration site in the city.

A former naval base that opened in 1841, it was known as HMS Sea Eagle during World War Two and was an important part of the North Atlantic Command.

There have previously been concerns about the site’s development and work on a maritime museum marking the city’s seafaring history was stalled In 2018.

Plans for a multi-million-pound distillery and visitors’ centre at the site were scrapped the following year.

The landmark  Ebrington Hotel opened in Ebrington Square last year.

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The Grand Central Bar on Strand Road was established in 1922 and has evolved to become an institution in the area.

However, the owners said that “there’s no easy way” to state that the pub is closing, with the doors set to permanently shut this Friday.

“We’ve been fighting for a few years against rising costs for us and our punters. There doesn’t seem to be any give at all and to continue on would be detrimental to me and my family’s life.

“It’s very hard not to make this post highly emotional because quite simply it is.

“Eleven years of a rollercoaster of trading, craic and music. Scrolling through the photographs and posters from day one makes us proud and nostalgic but really flippin sad.

“To my regulars and staff, I’m so sorry and so grateful in equal measure. It really is a big family and I wish you all the best in finding your new territory.

“We will trade from today until Friday. I invite everyone to come down to the pub on Friday to have a drink with us and some food. I only want a positive and proud goodbye. We’ll have two floors of music going from 9pm. I’ll post more details when my eyes stop stinging.

“I’ll never forget the floods of people who came to support us when the doors opened on the 7th December 2012. Incredible considering I’m a blow in.

“Thank you to all the messages of support, to end this super dramatic post is a quote sent to me by the super sounder past manager that is Dan McGeady – ‘Every new beginning comes from some other beginning’s end’.

“Thank you Derry, I am absolutely gutted!”

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Five former military buildings, including Ebrington’s clock tower, have been transformed as part of the 18-month long project and an initial 91-bedrooms are expected to be available from next month. That will eventually increase to 152 rooms once all work is finalised.

Developed by Ebrington Leisure Holdings, the £15m investment includes £1.75m in support from Invest NI and £7.25m from the NI Investment Fund.

Ebrington was established as a British naval barracks in 1841. It was taken over by the British army as the city’s main military barracks during the Troubles before being returned to public ownership in 2003.

Located on the Waterside, the square was later linked to the city centre by the Peace Bridge in 2011.

In a social media post on Wednesday, confirming the opening date, The Ebrington Hotel said: “We are delighted to announce that we have just been granted our license and will be opening to the public from July 7 2023.

“A massive thank you to McKelvey Construction, RPP Architects, our suppliers and our amazing staff who have brought this project in on deadline.

“We can’t wait to have you join us for The Ebrington experience.”

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After opening a restaurant in 2015, the owners saw an opportunity for an adjacent Taproom to diversify the business’ offering for customers.

And last year the gastro-pub worked with Johnston Financial Solutions to secure £50,000 of alternative funding which enabled the bespoke space to open.

The Taproom has allowed Walled City Brewery to provide an alternative bar for wedding, private parties and other functions, host tasting experiences from its new gin school, and it has also created a bigger brewery space which increases brewing capacity and provides opportunities for tours.

It has also secured a ‘producers’ liquor licence, which means that the only alcoholic drinks that are served are the ones produced on site.

Mark Johnston, above right, director of Johnston Financial Solutions, said: “We were approached by James Huey and Walled City Brewery to help unlock additional funds that were required to launch and open the Taproom.

“They had received a grant, but had a shortfall in funds which was required to make their dream – which had been seven years in the making – a reality.

“We explored and secured an alternative funding option, and the Taproom opened last September. We were delighted to support Walled City Brewery with the opening of this venture, which is fantastic for Ebrington Square, the city and its customers – and to see the positive results for their business.”

Co-founder James Huey, above left, said “Securing the additional finance was key to the opening of the Taproom, and we found the whole experience of working with Mark seamless and positive.

“The Taproom has really cemented what we want to do as a company and the foundations of our business. We believe it has helped make the business a lot more healthy and profitable and we are excited for our future.”

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