Leisure group Georgica has given up hope of finding a buyer for the business and will instead form a new parent company in an effort to divert all extra cash back to its shareholders.

The company, which operates the Tenpin bowling centres, has suffered badly from the effects of the smoking ban, the economic downturn and the falling of property prices.

Announcing its full year results for 2008, the company admitted that it had failed to buck the trend amid "deteriorating conditions".

Georgica reported pre-tax losses of £44.5m, compared with a profit of £7.2m in 2007.

Don Hanson, chair, said the plummet in profits was down to the fall in the carrying values of the group's trading units and properties held for redevelopment.

Georgica currently operates 38 Tenpin sites across the UK.