Regent Inns, owner of the Walkabout and Jongleurs chains, said that it had end discussions with potential suitors, blaming the impact of the credit crunch.

The bar operator's shares closed down 38.46 per cent or 2.5p to 3.75p, as it reported that profits before tax in the financial year ending June 28 would be "minimal", and revealed that talks over a sales of the business were off.

"Due to the continuing difficulties for potential offerors in obtaining the necessary financing in current market conditions, it has not been possible to reach agreement on the terms of a formal offer," Regent Inns said in a statement to the market this morning.

The bar operator suggested that there would be job cuts amid plans to cut costs and shore-up the balance sheet. It also plans to sell non-core properties and reduce its debt.

The group also announced that it has appointed chief financial offer John Leslie as chief executive as part of a board reshuffle, in a move which has seen Russell Scott, managing director of operations, quit the group. Bob Ivell, formerly executive chairman, is to become the group's non-executive chairman.

The group's bars and comedy clubs have been hit by the smoking ban, falling consumer confidence and the increase in alcohol duty announced in the Budget. Walkabout sales may have been hit by a reduction in the amount of work that some Australians on holiday visas can do in the UK.

The group said it was considering a number of bids after sales fell 11 per cent this year. Companies whose names have been linked to a bid include Brook Leisure, the British nightclub operator; US buyout specialist Sun Capital Partners; Alchemy Partners, Jon Moulton's private equity company; Novus Leisure, which owns the Tiger Tiger bar chain; and Laurel Pub Company, backed by Robert Tchenguiz, the Iranian-born entrepreneur.

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