Jennings, the Lakeland-based brewer and pub operator that dates back to 1828, says it is pulling out of managed pubs.
The company plans to sell off the bottom half of its 44 managed houses over the next six months and transfer the remainder to its leased business, InnVenture. The resulting estate of 115 tenanted pubs will then be expanded through acquisition.
Nowhere has the impact of foot-and-mouth been greater than Cumbria. Around 50 per cent of the company's pubs are based in rural areas in the North West.
The company, founded in 1828, was slightly sheltered from the worst by its Café Inns pubs, which, based in towns, have not been affected as badly as rural inn destinations. It acquired the 70-strong Café chain in July 1999 for about £8m.
Managing director Mike Clayton said foot-and-mouth had not influenced the decision. "It did however delay the process," he said. "We didn't feel we could be working on two major things at once.
"It is our view that if you are in managed houses, you have to be focused and because of various acquisitions, we are not. We want to concentrate on our leased business and on achieving critical mass."
Its interim results showed profits had plummeted by 38 per cent to just over £1m on sales down seven per cent at £15.8m. The company, listed on AIM (Alternative Investment Market) and currently capitalised at £18m, demonstrated a healthy balance sheet with net assets of £32.2m.
"Jennings will be a significantly different company," said chairman John Rugard.
"Initially, both its turnover and its net assets will be smaller. The board, however, is confident of Jennings' ability thereafter to build a growing and increasingly profitable business."
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Jennings finds cheer in pubs and ales (19 June 2001)
Jennings demands public cash for rural pubs (17 May 2001)
Jennings hit by foot-and-mouth (06 April 2001)
Jennings tightens belt after sales fall (04 December 2000)