Town pubs in closure shock

Two major Shrewsbury town centre bars are to close this weekend with the loss of 45 jobs, it was revealed today.Bar Med in Lower Claremont Bank and Yates' in Mardol will cease trading on Sunday as the Laurel Pub Company, owner of both venues, carries out a nationwide closure programme which will see more than 60 pubs and bars close across the UK.

Adrian Clarke, manager of Yates, said staff were told the shock news yesterday and said 45 people would lose their jobs.

Nationally it was reported today that Robert Tchenguiz, the property entrepreneur, is poised to place his entire Laurel Pub Company in the hands of administrators after failing to find buyers for almost 100 loss-making outlets, most of which have ceased trading.

It is understood Mr Tchenguiz will launch immediately a bid to buy back the business with the exception of the loss-making sites, although analysts believe he could face competition for some or all of the sites from private equity firms.

Mr Clarke said the company had decided to close the bars following a series of devastating blows to hit the industry including last year's smoking ban, the worldwide credit crunch and the rising duty on alcohol and fuel which meant people had less money to spend.

Mr Clarke said: "Yates' and Bar Med will close this Sunday. We will close the doors and that will be it.

"As a company, over 60 sites will be closing and there has already been 27 that have closed. There will be 45 jobs lost in Shrewsbury.

"The company has decided it wants to get rid of the pubs it owns and wants to focus on the restaurant side of the business."

He said that Shrewsbury had noticed a significant dip in trade over Christmas and said it had also affected other pubs and bars in the town centre.

Mr Clarke said: "To lose two bars off the circuit is going to damage the nightlife. I don't think anybody would admit it but the whole town is struggling in a big way."

Mr Clarke also said that 2007 was the worst in 25 years for the industry.

Nobody from the Laurel Pub Company was available for comment this morning.