'Confused and upset': What's going on with the closure of Auckland's Gypsy Tea Room?

The Gypsy Tea Room in Auckland's Grey Lynn.

Plans to redevelop a "beloved institution" in Auckland's Grey Lynn into real estate offices appear to be going ahead despite public opposition led by a NZ Hall of Fame musician.

The Gypsy Tea Room - open for more than 20 years on Richmond Road - is set to close at the end of August so landlords Barfoot & Thompson can redevelop the site, prompting public outcry from patrons of the watering hole.

A community campaign and petition have been set up by residents who frequented the bar, in the hopes of getting Barfoot & Thompson to instead renew the business' lease. But its co-owner, Brett Simeti, said there had been no movement in the agency's decision.

"This bar has been serving its local community and countless visitors for 22 years and is a beloved and famous institution in the neighbourhood," Th' Dudes frontman Peter Urlich wrote on social media.