The venue announced the closure in a social media post, but indicated the club would reopen in the future.

"It is with a heavy heart that we will be shutting our doors this weekend due to the current COVID restrictions," the statement said.

"These restrictions have made trading unsustainable for hospitality venues like ours and our thoughts are with our 70-plus staff who will receive zero support from the government.

"We will reopen as soon as we can and will look forward to you, our loyal patrons, coming out for a drink!"

Dancing is not allowed under the current COVID rules for hospitality and licensed venues in the ACT and patrons must be seated while eating and drinking.

Twenty-five people, excluding staff, are allowed inside a venue before density limits of one person per two square metres of indoor space applies. There are no density limits for outdoor spaces.

Mooseheads management took a swipe at the lack of government support for stood-down workers amid the Omicron wave.

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From January 18, workers who have lost at least one day of work because they are isolating after testing positive for COVID-19, if they are caring for someone with COVID-19 or have to isolate because they are a close contact may be eligible for a pandemic leave disaster payment of up to $750 from Centrelink.

However, it does not cover workers who are stood down because their employer has decided to close.

Last week, Canberra business groups called for more support, especially for hospitality businesses facing staffing shortages and a downturn in trade as people choose to stay home amid rising COVID infections.

Chief Minister Andrew Barr said the ACT government would continue its existing programs of business support, but there was presently no need for new measures.

Meanwhile, speculation has been brewing the company that owns Mooseheads is working on a new venue in the space where Outback Jack's used to be.

Renovations have been ongoing at the prime location on the corner of Northbourne Avenue and London Circuit. The new venue is expected to open later this year.

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