A club at the centre of a murder investigation has been closed down after  bar staff “brazenly and routinely” sold balloons filled with gas to customers.

The South Pole in Greenwich High Road has had its licence revoked by councillors following complaints about drugs and escalating violence coming from the club.

A police investigation into the boozer – which has been open since 1849 – was triggered after a man was beaten up outside on February 13 and later died in hospital.

Police agreed although the management and staff were not to blame for the death, the premises had become associated with rising crime – including punters turning up “with knuckledusters, knives and baseball bats”.

The venue, split across three floors – the North Pole restaurant, first floor bar and then the South Pole club, has also had complaints made about anti-social behaviour.

Speaking on Wednesday (April 25), Heather Oliver, legal representative for the police, told the council: “Of course everyone is aware of the tragic events on the 13th of February where a 30-year-old man lost his life.

“The fact the murder took place in close proximity to the premises, and involved patrons had been drinking in the premises, is sufficient to show the escalating of violent crime. That was the culmination of an increasing trend of violence.

“CCTV footage showed bar staff with a relaxed and a routine air, filling balloons full of gas and selling those to customers in the basement area. It seems likely to police that had been going on for some time – customers appeared to know that was a service they could obtain at the nightclub.”

Other serious crimes reported included door staff and punters being smashed over the head with glass bottles or bats.

Police said they had agreed new terms with the owners, who had already announced they would be permanently closing the South Pole, which they felt would be a “positive step” for reducing crime.

Gary Grant, barrister at Francis Taylor Building, said on behalf of the licence owner: “The brutal beating up of a young man outside the premises, by a group of males, some of whom had been in the South Pole, these sort of fatal incidents can occur anywhere, at any time – it isn’t the fault of the premises it was associated with.”

It was claimed that the owner, Osman Zinnureyin, was not aware bar staff were selling what was believed to be nitrous oxide, also known as laughing gas or hippy crack.

Mr Grant said: “The room where the balloons happened was the basement. My client did not base himself in the basement, and that was his mistake. That is why he has agreed to remove himself as the premises supervisor. Relatively, all drugs are harmful – alcohol, nicotine, all harmful. Relatively, nitrous oxide is less harmful than others.”

A spokesman for some neighbours living in nearby Bellville House said that some residents feared leaving their house at weekends because of anti-social behaviour, while others slept with ear plugs in.

Mr Grant said the amount of crime was not disproportionate, and the owners had agreed to close the nightclub to tackle residents concerns.

Scotland Yard and the pubs owners proposed shutting down the club where the balloons were sold, which was open until 3am, as that is where the majority of crimes appeared to stem from.

The North Pole has also had its closing hours chopped from 3am to 1am on Friday and Saturday’s, meaning that punters have to finish their last drink earlier.

Councillor Jackie Smith, chair of the committee which made the decision, said: “The agreement reached by the police and the applicant should be followed. We hope these measures will make things ok for everybody.”

The North Pole will be re-marketed, focusing on good food, wine and craft beers.