Fish! chairman Tony Allan could be saddled with legal costs of nearly £1m after he settled a libel action with Marco Pierre White

in which he alleged the former enfant terrible had served a customer real ink instead of squid ink in a braised cuttlefish dish.

Allan withdrew the imputations made in a newspaper interview unreservedly, apologised publicly and agreed to pay damages and all legal costs.

The settlement meant that a case that was expected to last up to a month in the High Court was settled after lunch on the first day.

Allan acknowledged the story was entirely untrue and now faces having to pay the rumoured £1m.

Fish! stressed that any costs to the company would be negligible and would be met by Allan personally. It was not the chairman's intention to sell shares in Fish! to meet the payment.