Pub group Regent Inns, operator of Walkabout bars and Jongleurs comedy clubs, is the latest company to be forced to take its properties off the market due to the current economic conditions.

The group has cancelled a proposed £25m sale and leaseback of 12 of its freehold bars and Old Orleans restaurants having failed to generate sufficient interest from buyers.

The sale was part of restructuring plans aimed to maximise revenue and reduce its debt after it reported a £58.1m loss (before tax) in the year to 28 June, against a profit last year of £4.1m, and a 7.5 per cent decrease in like-for-like sales.

John Leslie, chief executive of Regent Inns, said: "We are better off holding onto the freeholds until the market conditions improve.

A transaction of this nature would not deliver a satisfactory outcome for any of our stakeholders at this time. We may still sell, but only when the market improves."

The group's lending banks have revised the company's facilities in order to accommodate the group's present financial situation and the future state of trading.

The new covenants relating to these facilities are not dependent on the disposal of properties, however the proceeds from any sale must be used to pay down the group's net debt, which currently resides at £78.9m.

Jim Glover, chair of Regent Inns, said: "We continue to focus our efforts on revenue maximisation and cost reduction, to enable us to withstand the pressures of the current economic climate and are pleased to have revised our banking facilities accordingly."