Punters took to Facebook to vent their anger at the loss of another live music venue in the capital.

''Shame on you! Our community loves live music and Canberra's musicians [and interstate acts] and their fans need and deserve a decent venue. Disappointed doesn't even come close,'' one user said.

''Just returned my Tradies' members card. Never going there again,'' another comment read.

Bands including British India and Closure in Moscow played the Greenroom when Tradies hosted it on a one-month trial in March, and Perth band Karnivool was booked to play after it was scheduled to reopen in June.

Canberra promoter and Greenroom manager Garry Peadon said the Tradies' decision to discontinue the venture was disappointing.

Mr Peadon said management had told him they were keen to make the Greenroom a permanent fixture at the club, and had even started renovations for its reopening, when they abruptly pulled the pin on Wednesday.

''When they gave [the reopening] a green light, I fast-tracked a lot of things and pulled a lot of strings to get bands to play, and now I've had to call them to say it's not on,'' he said.

But a spokesman for the Tradies Group said it had emerged since March that establishing the room as a permanent live music venue would not be commercially viable.

Costs of equipping the room with adequate airconditioning and lighting, and soundproofing the space, would be greater than first anticipated, and some members had complained about the behaviour of those going to see bands.

Mr Peadon first opened the Greenroom in Phillip in 2003 and hosted many bands until problems with the lease led to its closure in 2008.