I read online recently that all adult cinemas in London have been closed down. The councils don't "want those sorts of establishments" in their areas, so they've been shut down and any future license applications will be refused.
Hi, I'm not totally up to speed with what's going on, but I did read something along the lines of what Dave says. It seems there is going to be a clampdown on such venues; whether or not any are still operating I really don't know. I'm fairly sure that the local authority could be challenged on this. However, since the business is very much based around permitting questionable activities, and isn't a high revenue business, I think it's likely that most will disappear.