Owner Paul 'Macca' McMahon says it's a shame he has to close but he feels he has little choice.

"The majority of it is coronavirus, it has had such an impact on small business," he said.

"Both financially and mentally it's pulled the stops out from under me and sadly we have to wind it up."

Mr McMahon said he hadn't traded since March.

"It's just made it financially impossible to get back on our feet and get running again," he said.

The owner added he couldn't solely blame the pandemic for the closure.

"I think just over time people's habits have changed, kids now instead of jumping on their bikes and coming go-karting; they're too iPad-friendly...it's a whole different generation of people coming through," he said.

"There has been a waning number for probably the past five-to-six years."

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Mr McMahon said he would continue with his other Macca's Amusements business and is starting to take bookings for backyard kids parties.

He said he would love to open another go-kart centre.

"This is probably not the best location anymore," he said of the Walsh Road business in the industrial estate.

"To find me you actually have to want to go go-karting, I'm not on a road.

"This business would thrive if it was on a road where people had to drive past.

"Warrnambool has got more than a big enough population to support a go-kart centre."

Mr McMahon, who has had the business the past 11 years, said it had been operating in the same shed for about 38 years. He is the fourth owner.

About a year ago he changed the name of the business to Warrnambool Fun Centre.

Mr McMahon said the venue had hosted singer Guy Sebastian.

It was also popular during speedway season with American teams booking in private sessions.

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