Batley’s former Variety Club will not become a listed building after English Heritage rejected an application.
Former promotions and public relations officer Maureen Prest launched a campaign after the News revealed the premises - now the Frontier nightclub - could be demolished by developers.
The Variety Club, which attracted stars including Shirley Bassey, Tom Jones and Louis Armstrong in its heyday, could be torn down to make way for a retail park or office complex.
But hopes of placing it on the register of listed buildings have now been dashed.
Mrs Prest said: “We always knew it was a long shot but we are absolutely devastated.
“A lot of people who signed up to the petition are going to be really disappointed, as we haven’t got what we wanted.”
Mrs Prest said the application was rejected for a number of reasons, including the fact that the internal structure had been altered too much.
She added: “We have now got to give it a lot of thought and see if we think we should appeal.”
Fears the building could be torn down came after developer Richard Morton was asked by its owners to survey the building and suggest potential uses for the site.
More than 1,000 people signed the petition to save the building from demolition.