The Cellar Restaurant at the Tallan Building will be closing Aug. 29, owner Eddie Hearn said.
Mr. Hearn said the restaurant had a five-year lease that is expiring. He said the restaurant was notified that the lease will not be renewed.
Steve Adams, owner of Food Works on Manufacturers Road, did not return phone calls on reports that his restaurant plans to take over the space and spend over $500,000 for renovations.
Food Works open in 2006 at the Knitting Mill building.
Mr. Hearn said he will seek another site for his restaurant.
He has seven employees.
The Cellar has been the regular Monday meeting place for the Chattanooga Engineers Club.