Similar situation near us.
Grotty old pub
Applied for a music licence to keep afloat, which it got.
After a year of rock gigs the pub still was not viable.
Pub closed down for 3 months.
Given to a new tenant by the brewery
Pub done up a bit, got in some proper beer, got rid of the one arm bandits
Restarted the gigs, (on a far smaller scale than before, no rock bands, more like 3 blokes with acoustic instruments)
Ex Landlord, who lives opposite has put in all sorts of objections into the council, pub is now struggling to get a music licence for the folk week !
They have already lost the battle to have people drinking outside, which as far as I know had always been the case in the past.