Camra predicts backlash against Swallow closures

Real ale lobby group Camra has warned that hotels and pubs owned by the Swallow Group will lose customers if jobs are axed through the closure of their two breweries.

Research manager Iain Loe said that the hundreds of redundancies, which look increasingly likely, will cause locals, friends and family to avoid the hotels in protest.

"I don't think there is any need to organise a boycott. There will be such a swell of ill-feeling that many will not be willing to use Swallow hotels or pubs," he said.

But Swallow's chief executive Peter Catesby said that he would be "very surprised" if there was a backlash against action taken by the company. "People will be sad but I believe most people know it is not viable to keep the breweries with a tied estate," he said.

A new offer tabled by the management buyout (MBO) team for the Swallow Group's two breweries in Sunderland and Sheffield is to be rejected.

The group, which wants to get out of brewing to concentrate on its hotel business, has been offered new terms by the MBO's backer, Alchemy Partners, but Catesby said the deal falls short by around £30m.