After eight years of being on the centre stage of the city's amateur music scene, the owner of the Backwater Lounge will turn out the lights for the last time tonight.

The Backwater will be closing its doors following tonight's Whitewater at the Backwater show after owner Ed Festel took a look at the bar's balance sheets and decided the numbers just didn't add up.

'My revenue since January has dropped off nearly 60 per cent. I've been losing money on that bar for a long time,' Festel said in an interview.

'I hear all the bars in town aren't doing so well.'

He said he's been pondering the decision for the last three months and looking at his options but in the end, he decided he just couldn't make a go of it.

'You could go really low and get the professional drunks or go a lot higher, and that's really tough right now,' he said.

He said he feels 'relief' after making the decision because he 'was never really a lounge person' and he didn't like running the business at a loss.

'To make it work, you have to be a bar person. I was running the bar myself but that was not where my heart was,' Festel said, explaining that he will continue to run the adjoining Riverview Hotel, formerly known as the Regina Hotel.

Festel said while he's locking the doors after today's show, he is going to hold onto his liquor licence in case the bar situation in Whitehorse improves.

Peggy Hanifan, who has been hosting her open mic show Whitewater at the Backwater for nearly eight years, said she is disappointed she'll no longer be playing at the bar but will continue on with her show.

'I feel bad (the Backwater) is closing ... (but) ... I will be continuing at the Boiler Room next week,' she said.

Hanifan, who started playing the guitar at the age of 11, said it was hard to pinpoint her favourite memory of the last eight years.

'I guess one of the highlights for me was having my son, Patrick Lethbridge, come up and play with me.'

She said she also enjoyed 'people from around the world' who would bring their instruments and take part in the open mic.

When asked about what song she likes to play the most, Hanifan had two answers.

'For a song that I wrote, I would say Make Me an Offer is my favourite. For one that I didn't, hmmm, I would have to say Harvest Moon.'

Hanifan said while she doesn't have a name for her act at the Boiler Room as yet, it will essentially be the same open mic format, and she hopes her fans won't mind making the switch.

She wanted to send out a special thanks to her sister Patty, who encouraged her to get up on stage for the first time.

Anyone interested in seeing Peggy's last show at the Backwater should go to the lounge at around 9 p.m.