The Lighthouse on Homestead, a neighborhood restaurant and bar near the North Shore between Duluth and Knife River, has closed.

The four-year-old, family owned and operated business 17 miles from downtown Duluth served its last meal on Wednesday.

It didn't close because of business being down, said co-owner Andrea Darsow.

"Business had been fantastic, actually," she said.

Rather, the closure was the result of bank action, family members suggested.

"It was very sudden; it wasn't in the cards," said Darsow, who co-owns the restaurant with her mother, Brita Aug, and two aunts, Lynne Compton and Claire Seckinger.

Because they are still under contract with the bank, they aren't allowed to talk about it, Darsow said.

The three sisters and daughter started the lighthouse-shaped restaurant and bar with a nautical theme at 5730 Homestead Road in June 2007. They sought to fill a community void left by the closing of the Shorecrest Supper Club two years earlier.

Like the Shorecrest, they wanted to create a restaurant for locals that would serve as a community gathering spot.

All four grew up close to the restaurant's site and still live nearby. All had worked at Betty's Pies near Two Harbors in jobs from server to general manager.

A 2007 News Tribune story said the four women had worked more than two years to make the Lighthouse restaurant a reality. Although they had trouble convincing banks that they knew what they were doing, people living nearby were supportive. Neighborhood women planted flowers outside the restaurant. And for the restaurant's nautical décor, neighbors donated old pictures, fishing nets and lures and other memorabilia from the days when the area was a hub for commercial fishermen.