ASR Limited, the New Zealand-based company that built the Boscombe surf reef in Dorset, has ceased trading.

The liquidation of ASR casts doubts over the future of the site as a surfing attraction - the only artificial surf reef in Europe.

Plans for the beleaguered £3.2m reef first surfaced in 1999 when Bournemouth Borough Council gave the green light for a feasibility study to be conducted on the project. Detailed plans were then approved by the council in March 2003.

The reef finally opened in November 2009 following a number of delays and setbacks during building works.

Soon after it was opened, however, it was discovered that the reef was producing "the wrong kind of waves", rendering it inaccessible for many potential users.

ASR had been tasked with repairing the faults but the reef was then hit by a boat, causing structural damage that forced its permanent closure in April 2011.

The plan was for ASR - one of only a few companies with the expertise to repair the damage - to return to the site to correct the problems.

Following the demise of ASR, it is now unclear whether the reef will ever reopen as a surfing attraction.

Opponents of the scheme have described the project an 'embarrassment' to Bournemouth Borough Council, which has supported and part-funded the building of the reef.

The council has defended the investment, describing the reef as a "fantastic success".

Speaking to the BBC, the council's director for tourism, Mark Smith, said the reef could potentially be used as a dive centre in the future.

In a statement sent to Leisure Opportunities, a council spokesperson added: "The Council has been awarded significant government funds to develop a Coastal Activity Park at Boscombe, as part of the National Coastal Tourism Academy. The reef is integral to this Coastal Activity Park.

"Before the reef was damaged it was being used for much more than just surfing.

"Depending on the prevailing conditions on any given day, the reef was being used for surfing and bodyboarding but also, on calmer days it had become a draw for kayakers, stand up paddle-boarders and snorkelers, all keen to catch a glimpse of the marine life that has now colonised the reef.

"Our Coastal Activity Park plans build on these extra uses, and include a commercial dive centre, a try-dive facility and a dive & snorkel trail around the existing reef, with additional submerged artefacts for more experienced divers."