MADISON, Wis. -- The global economic recession has struck close to home, claiming a popular downtown cafe and live music center in Madison.

The owners of Cafe Montmartre, located at 127 E. Mifflin St., near the state Capitol, said on Tuesday that financial troubles forced them to close for good on Sunday.

"After nearly 17 years of operation, Cafe Montmartre closed its doors this week. We tried to hold on, but the current economic conditions have left us no choice," said owners Craig and Kevin Spaulding.

The brothers Spaulding said that they are "very grateful" for their loyal customers, clients and vendors and that they have "tremendous sadness" about the decision. However, they said it was the right decision given the circumstances.

The small but unique place catered to all kinds of people -- wine connoisseurs as well as music aficionados. It captured a loyal clientele at its East Mifflin Street corner, WISC-TV reported. The owners said business had been declining for a year and the current economic conditions left them no choice but to shut down.

Kevin Spaulding said that they had hopes they could work out refinancing, but it became clear on Monday that wasn't going to happen. About 20 employees were given the bad news on Monday.

The owners said that they were hoping things would pick up, especially with private parties, but that never occurred.

He said there is no immediate buyer for the business.

"It's like a death in the family," said Spaulding.

Other local club owners said that they could sympathize. They said the economy has made it tough to predict concert crowds.

"Now, it's just its not a sure thing. It seems day-to-day," said Cathy Dethmers, the owner of the nearby High Noon Saloon. "We're sort of trying to estimate what might happen and we're having a lot more misses than hits."

All shows scheduled for the club there are being treated as canceled although the High Noon Saloon is trying to place five or six of the shows that were supposed to be at the café, including one coming up July 7.

Deathmers said the closing of the club is a big deal because it had a unique niche with electric, local and regional bands that performed well in the cafe setting.

Stay tuned to WISC-TV and Channel 3000 for continuing coverage.