A RHYL youth centre which has received more than £700,000 has gone into administration.
Grant Thornton said it will be appointed administrators of the Rhyl Youth Action Group (RYAG), based on Elwy Street, in January.
Rhyl Town Councillor, Joan Butterfield has branded RYAG a “dangerous eyesore” and has questioned the management of the project.
“I want to know where was the managing committee? - If it had been properly managed how could it have ended up like this?
“It’s such a disaster,” she said.
A Welsh Government spokeswoman, said the project, which has received grants totalling £767,720, has been properly monitored throughout.
She added: “As soon as we were aware of a number of emerging issues with RYAG in 2011, the North Wales Coast RA team began to work with the organisation to try to resolve these issues.
“We have been working closely with the RYAG directors and the other funders involved for 18 months to find a sustainable way forward for the company which protects the important services that they deliver for the young people of Rhyl.”
Cllr Butterfield said it is so disappointing and she feels sorry for the youngsters who would have gained from the group.
“It was a wonderful project and it would have benefited Rhyl - I’m just sorry for the young people of the town,” she said.
“I’m just shocked that the building has lasted so long with the state it is in and that it has not been condemned.
“If a surveyor said it did have to come down there would be an out cry after all the disruption it has caused.
“It has distressed the neighbourhood for more than five years.”
The main creditors, the Wales Council for Voluntary Action (WCVA) and the Welsh Government, said they will work with Grant Thornton administrators to try to ensure that the physical asset the services offered continue to be delivered in the future.