Watford’s biggest nightclub will shut if tentative plans to build over a hundred homes are approved.

Pryzm's future has been threatened by a proposal for 146 homes on a site in The Parade which includes the popular club.

The Observer has been told that if the town centre plans go ahead, it would "result in the closure of Pryzm".

The development, which also includes the Iceland supermarket site and car park, is supported by the owners of the building, Watford Parade (Gibraltar) Limited.

Pryzm, which has a lease on the site and over 100 employees, says it hopes redevelopment attempts will be "seen off" by the council.

Those promoting the development say they are currently engaging with Watford Borough Council, the local planning authority, on its proposal.

Dwyer Asset Management Limited, which is promoting the site on behalf of the owners, says it wants to create a new "family friendly retail space", which will also include new homes.

The emerging plans say around 146 homes would be built – of one, two, and three beds – including an unspecified number of affordable homes, along with two retail units, in a building up to eight storeys.

A representative for the project team said: "We are currently engaging with Watford Borough Council on shaping the emerging proposals and very much look forward to hearing what residents have to say.

"We have sought to bring forward proposals which are sympathetic to character of the area, while taking the opportunity to bring more people into the town centre, alongside new family friendly retail space which will contribute to the vibrancy and economic viability of Watford High Street."

At this stage, no planning application has been submitted but there is an intention to do so "in the near future".

Part of this site is included in the council’s draft local plan which is on course to be adopted in the autumn. The plan sets out where homes can be built to meet Government housing targets.

Although there are no official plans just yet, a public consultation has been launched as promoters seek initial feedback about its proposal.

Feedback can be given via a website set up specifically for this scheme – https://www.theparadewatford.com/

Pryzm is Watford and Hertfordshire’s biggest nightspot with clubbers travelling from across the county and even London for a night out.

It was formerly known as Oceana before being rebranded as Pryzm in 2016.

A spokesperson for Rekom UK, which owns Pryzm, told the Observer: "Pryzm is one of the most successful and long-lived clubs in the south of England. Formerly Top Rank, Baileys, Paradise Lost, Kudos, Destiny, Oceana and now PRYZM, it has entertained millions of visitors over 40 years and we hope that it will continue to do so for years to come.

"It plays a key part in feeding the success of other bars and restaurants in the town centre and in its own right employs over 100 staff.

"The landlord is within its rights to explore alternative options for the site but we hope the people of Watford and the town planning department will see off attempts to remove the key attraction to the night-time economy, which attracts businesses, creates jobs and drives income, for yet another residential scheme."

There were concerns last year the club would not be able to reopen after it suffered financially as a result of the pandemic. But when Covid restrictions were eased, Pryzm Watford reopened and has been welcoming clubbers since.

Iceland has been approached for comment.