RHYL'S Iconic Sun Centre could have closed its doors for the final time with the loss of more than 120 jobs.
Its operator Clwyd Leisure is in a funding dispute with Denbighshire Council over the attraction which opened in the 1980s.
The Nova Centre in Prestatyn and the North Wales Indoor Bowls Centre, both operated by Clwyd Leisure, may have to close as of March 31 with reduced opening hours at the bowls centre from January.
A spokesman for Clwyd Leisure said: "It is with regret that Clwyd Leisure has started consultation with its staff regarding potential redundancy of the workforce of 70 and the further loss of 55 seasonal posts.
"The board of Clwyd Leisure wish to offer sincere apologies to our staff, customers and the communities of Rhyl and Prestatyn for these potential closures.
"The company made Denbighshire Council aware that it could not continue with the proposed reduced funding level."
Bosses at Clwyd Leisure have said its cash balances will be exhausted beyond what is needed for an orderly close down of the business.
They say that when the company was created in 2001, Denbighshire County Council signed a funding agreement, contributing £391k in the first year to the operation This funding was protected by contract and could not be reduced without the agreement of both parties.
They add that, despite this contractual agreement , the authority has reduced the funding to a point where this year it stands at £245k.
The authority has insisted a further £50k will be cut from the funding next year , reducing it to £195k.
Denbighshire Council announced in January that the Sun Centre was set to be replaced by an ambitious £10m aquatic centre after an agreement with development partners Alliance Leisure.
But officials said the Sun Centre would remain open until the new aquatic centre is opened.
A Denbighshire Council spokesman said: "It's come as quite a shock to see the Clwyd Leisure press release, which was released this afternoon, and we will consider our response in full over the weekend. Given what the company has said, we will be responding accurately and fully at a press briefing on Monday morning."