A notice placed on the Canal Turn, on Lancaster Road, claimed the council had instructed that major improvements were needed to make the business viable.
Lancaster City Council has since confirmed that they were not responsible for the notice, and that no Environmental Health Officer had visited the premises.
A spokesman from Punch Pubs, the national chain that owns the Canal Turn, said: “We can confirm that the publican of the Canal Turn pub in Carnforth has made the personal decision to leave the business.”
Whilst the pub is temporarily closed, new management is currently being recruited, said the spokesman.
The owners added that they were not aware of any improvements needing to be made and that they looked forward to opening back up to the community.