The Scottish brewer announced that it “finally had to admit defeat” after it has been struggling to find tenants to run the pub since it took on the site last November.
It said only three potential licensees looked at the site within that time, but all felt “the condition was poor and the investment required was too great”.
“We have been in a Catch 22 scenario as we have not been able to purchase the site at an economically viable price for public house use and as we don’t own the site we have not been able to commit to any refurbishment to a standard that reflects the quality of our brands,” managing director Gerald Michaluk said.
“So rather than risk damage to our brands reputation we have reluctantly decided to call it a day. Staff will be offered jobs at our other sites both on Arran and on the mainland so there will be no job losses.
“I would like to thank all the customers who I have enjoyed meeting and serving in the bar and I hope we will be able to serve them again in the future.”
The Pier Head Tavern will close on 31 August.
Punch Taverns said a buyer has not yet been found, but the freehold is being marketed as both a pub opportunity and a site with approved planning consent for development.