Old Monk has decided to appoint an administrator after talks with its bankers regarding its financial position failed.

In a statement released this afternoon, the company said it "believes that this course of action provides the best option for delivering a
stable environment in which the company can continue to trade".

The company also announced the suspension of trading in its shares "pending a further announcement"

Last Tuesday Old Monk said it was selling all eight of its Old Monk bars in London, plus Harry's Bar in Docklands, and using the £3.45m proceeds to cut its bank debts.

The buyer is believed to be the Puzzle Pub Company, the London-based pubco headed by Jamie Dutton-Forshaw, a member of the family that own Burtonwood Brewery.

The sale, which represents a book loss of £250,000, leaves it with 15 Old Monk bars, 10 of the Springbok sports bars the company has been increasingly focusing on, and four or five unbranded pubs.

On 29 September Old Monk flagged serious problems with the announcement that it was in discussions with its bank about its financial position.