St Austell, the Cornwall brewer, has acquired the Castle Inn in Devon from troubled pub company Heavitree for an undisclosed sum from an asking price of £1.25m. The freehold pub, which was sold through Christie & Co, is located in Lydford on the western slopes of the Dartmoor National Park. The sale follows Heavitree’s announcement at the end of July that it had suffered operating losses of £130,000 and was undertaking an ongoing strategic review of its operations. The AIM-listed operator said that it had called on the services of Ernst & Young to conduct a review after warning that the economic squeeze had combined with financial pressures on the industry to adversely affect the company’s performance.