Are we talking about The Crewe Limelight? I think LA Guns did play there, although never saw them myself. It was a fine venue indeed, went there hundreds of times, Justin did a JSAF gig there once! Woefully under-attended, though...
Actually, the news isn't as sad as thought, I investigated further and it's just the annexes and surrounding buildings that are getting torn down, the main Limelight building, the big chapel, will stay intact although it will be turned into flats. Obviously, I'd rather see the place reopen as a club, but at least it'll be a testament to lovely memories as I walk past (I live just down the road...)