Just out of interest would someone tell me what legislation are they using to close down a business. Genuinely interested
I believe that the police can serve a closure notice on any licensed premises (or group of them) based upon the licensing act. These can be served to protect the public from harm, even based upon potential for harm. Any pub that refused could face a licensing review, which could lead to the establishment losing their licence, the Designated Premises Supervisor (DPS) facing prosecution, if there has been issues, and all personal license holders (PLH) could potentially be banned from holding a licence.
In theory I believe that this law can be applied to all licensed premises whether off or on sale, so they could prevent local shops selling alcohol, however I can't recall hearing of this.
Someone in here will doubtless know more than me, and may correct me on parts. My licencensing knowledge is from a retail (off sales) perspective and I know the Scottish licencing act in more detail than that of England and Wales.