Residents and campaigners have reacted with dismay at the news that a controversial nightclub which lost a landmark High Court appeal against a cut to its opening hours will stay open until 3am next week.

Funky Mojoe, in High Road, South Woodford, will trade until 3am on March 8 despite being ordered to stick to normal pub opening hours due to crime and anti-social behaviour.

It is understood the venue has received a temporary events licence.

Cllr Richard Hoskins has supported residents who called for action over the venue.

He said: “I am tearing my hair out at the news. I am amazed and saddened that any licensing committee would do this.”

Jenny Lamb, 34, of Churchfields, South Woodford, said: “I am amazed that it’s opening again – I don’t think any of us were expecting that.

“I thought it was all over. It’s a shame that this is still going on for residents and I don’t see why it has to open even later than before.

“But I do feel sorry for the owners as well – it’s just a shame about the location.”

Last week’s ruling was the first time the High Court has decided on a nightclub’s licence.

As well as losing the appeal, Funky Mojoe was ordered to pay the council’s legal costs of £127,000 and denied the right to appeal.

The venue can now appeal the initial Magistrates’ Court ruling, which upheld the council’s decision.

Licensee Kerry O’Reilly made the announcement of the late opening on Twitter yesterday, adding: “whole new concept coming to Funky Mojoe, South Woodford.”The Guardian is awaiting comment from the council.