A Sydney pop-up arts venue has been forced to close after its lease was terminated using an obscure law dating back to 1842.

Divine Playhouse, operated by LGBTQ+ event organisers Heaps Gay Events, was padlocked just weeks after opening following complaints from Catholic groups that performances mocked the Christian faith.

The venue featured satirical performances including drag artists dressed as nuns and other acts that sparked protests outside the former church building.

Although the site was stripped of its religious status in 1932 and has operated as a theatre for decades, the building’s owners ended the lease using an “offensive trade” clause originally intended to regulate industrial pollution and businesses like slaughterhouses.

Organisers argue the law has never before been used to judge artistic performances and say the closure raises broader questions about freedom of expression.

More than 400 artists had registered interest in performing at the venue, with almost half already booked over the coming weeks before the shutdown.

Divine Playhouse has now launched a fundraiser and petition while exploring legal options and searching for a new venue.

Organisers say the case could set a precedent for artists, venues and landlords across Sydney, with the dispute likely to continue beyond the venue’s closure.