It was open as recently as a month ago according to tripadvisor:
http://www.tripadvisor.co.uk/Restaurant_Review-g315915-d3167578-Reviews-The_carousel_cafe_bar-Fuengirola_Costa_del_Sol_Province_of_Malaga_Andalucia.html
Latest review (2/9/2014):
'Found this place on a random day trip to...