It's in Chester. One of the nearest to me.
It was announced 2 or 3 years ago that it would close. This announcement seems an odd way to find out about it!
It is a nice hostel with several common areas and a good though cramped kitchen. It's in a quiet street, and focused on families -- well, all travellers really, but I suspect that backpackers found the mile walk from the centre a bit annoying.
Backpackers probably preferred the Backpackers hostel, which is small and very compact, a casual but fairly cosy atmosphere but with a dominant high-level TV in the common area. It is much closer to the city and especially to the rail station, but has no parking.