MADISON, Wis. -- An appeals court is upholding a decision by the Town of Cross Plains to shut down a strip club.

At issue was whether the club, Hot Rods, should have stayed open under a 2005 Dane County ordinance that banned strip clubs in neighborhoods.

The club opened in a former sports bar days before the ordinance went into effect. Its owners argued the club should have been grandfathered and allowed to stay in business. The town disagreed.

The District 4 Court of Appeals sided with the town on Thursday. The court said because the owners knew the ordinance was imminent when they started the club, the business wasn't grandfathered.

The decision is the first of its kind and could have an impact on attempts by businesses to avoid pending ordinances.