Old Monk calls in the administrator

Pub company Old Monk last week called in an administrator after crisis talks with its bank collapsed.

The company's shares on the Alternative Investment Market have been suspended as a result.

Old Monk said that following an "unsuccessful outcome" of the talks with its bank, "the board has resolved to seek the appointment of an administrator."

It added: "The board believes that this course of action provides the best option for delivering a stable environment in which the company can continue to trade.

"Accordingly, the company has requested suspension of trading in its shares pending a further announcement."

Old Monk announced on 19 September that it was in discussions with its bank concerning its financial position.

Five days later it exchanged contracts to sell off eight Old Monk-branded pubs in London and Harry's Bar in London's Docklands.

The proceeds of £3.4m were to be used to reduced its bank debt.