Relief as bars saved from axe

Pub bosses today said popular Wolverhampton bars The Litten Tree, Hog's Head and Yates's were safe from closure, despite fears the owner is facing administration.

Laurel Pub Company, which also owns Slug & Lettuce and La Tasca, is closing dozens of venues around the country amid reports of a financial crisis. The Bank in Lichfield Street has already shut. But today Laurel said Yates's, also in Lichfield Street, The Litten Tree in Victoria Street and the Hog's Head in Stafford Street were not under threat.

Laurel has been hit hard by the smoking ban which was introduced last July and Yates's on Birmingham's Corporation Street is expected to close tomorrow.

Company spokeswoman Maureen Heffernan said: "The only additional sites that now are due to close in the area are The Bank in Wolverhampton and Yates's in Birmingham."

She said reports that the company, which owns around 460 pubs and restaurants across the UK, was about to go into administration were "pure speculation".

The reports came after boss Robert Tchenguiz failed to find buyers for up to 100 loss-making sites.

Mr Tchenguiz bought Laurel in 2004 for £151 million, expanding the group by acquisition with the purchase of Yates Group, SFI Group and tapas bar chain La Tasca last year.

Reports suggest property entrepreneur Mr Tchenguiz is planning to launch a bid to buy back sites which are profitable from the administrator.

Around 1,800 staff are affected by the closures.

Laurel insists it is hoping to relocate as many employees as possible to other sites.

Laurel has said that negotiations are continuing to secure in an effort to secure the future of the business.

The company has also been affected by the credit crunch, believed to have scuppered its debt refinancing plans last September, and is in danger of missing the end of March deadline imposed by its banks.

A number of city centre pubs and bars have already closed their doors in Wolverhampton in recent months, including Seamus O'Donnell's in Princess Street and Pop World in Lichfield Street.