The owners of Lobster Cave in Beaumaris in the city's south-east today confirmed it has ceased trading almost 40 years since it first opened.

An iconic Melbourne seafood restaurant has closed its doors after 38 years in business following its collapse into insolvency.

The owners of Lobster Cave in Beaumaris in the city's south-east today confirmed it has ceased trading almost 40 years since it first opened.

The restaurant has closed its doors after the lease expired on the premises and owner Lob Nominees Pty Ltd also stopped trading.

The famous Melbourne eatery collapsed into administration in May.

Insolvency expert Stephen Dixon of Hamilton Murphy was appointed administrator for the embattled seafood venue.

"From the bottom of our hearts, we extend our sincere gratitude for 38 incredible years of friendship, laughter and unforgettable memories shared at Lobster Cave," a message posted to Instagram reads.

"We are gra