Mounting losses in its City of London site have forced Lowlander, the London-based bar operation, to undergo a pre-pack administration.
Following the pre-pack Lowlander now has one bar, located in Covent Garden.
Lowlander director Jim Fallon, a former director of McQueen Ltd which advised regional brewers such as Marston's and Fuller's on takeover deals, said the group's bank, RBS, has been "paid back in full" .
According to Fallon Lowlander was now in talks with its creditors.
A downturn in the City's fortunes was behind the failure its Square Mile bar, according to Fallon, who believes talk of the area rebounding is premature.
"The site was really struggling, and in the last couple of months sales just dropped off," he said.
The group had tried to come to a deal with its landlord but failed, hence the pre-pack arrangement, he added. The company had been paying £135,000 a year in rent.
"We took legal advice to ensure we were complying with our duties as directors," said Fallon. "We are the third business to take on that site and fail. Like those before us we thought we could do better than our predecessors."
Fallon said the pre-pack process had been a "salutary experience, and not one I'd like to repeat".
However he said Lowlander's Covent Garden site was trading well, considering the economic environment.
The group had also been bolstered by the arrival of former Food & Drink Group chief operating officer Ray McClymont on a full-time basis, following a period as a consultant for the business.