Robert Tchenguiz, the billionaire property entrepreneur, is considering putting part of his Laurel Pub Company into administration in a fresh setback to his ambitions in the pub sector.

Mr Tchenguiz, who is nursing big losses from his involvement in Mitchells & Butlers, is understood to be considering putting between 50 and 100 of Laurel's 460 outlets into the hands of administrators to facilitate a debt refinancing of the rest of the company.

Laurel is believed to be looking at a so-called pre-packaged administration that would have no impact on the rest of the business. The move would allow it to bring to a conclusion protracted talks over a refinancing of its estimated £165 million debt burden.

The establishments in question are all loss-making leasehold pubs and bars in high street locations that have suffered a sharp fall-off in trading since November because of the impact of the smoking ban and the consumer spending downturn.

One industry source said: “Although some of these units make money before rent, they have onerous leases. Many have been loss-making for some time and a small number have been closed for a year.”

Laurel is still hoping to avoid administration by selling the troublesome outlets, either as a group or in smaller packages. Yet analysts pointed out that the large number of such sites on the market would make a sale difficult.

Mr Tchenguiz has until the end of March to negotiate a refinancing of Laurel's debt burden with Kaupthing and Dresdner Kleinwort, the company's bankers. Although the banks are said to be supportive, the discussions, which started several months ago, have been complicated by the credit crunch and the decline in trading in drink-led pubs and bars.

One source said: “Trading was fine, then in November it was as though someone had turned out all the lights.”

R20, Mr Tchenguiz's investment vehicle, acquired Laurel in November 2004 for £151million, then followed up in May 2005 with the purchase of Yates Group for £202 million. A month later he added 98 SFI Group pubs for an estimated £80 million and in April last year he spent £123 million on La Tasca, the tapas bar operator.

The resultant business has been split into two distinct divisions - casual dining and pubs and bars - each with about 230 outlets. The loss-making sites being targeted for possible administration are all from the pubs and bars division, whose biggest brand is Yates's, with about 112 outlets. It also owns the Hog's Head and Litten Tree chains.

By contrast, the casual dining division, in common with some of its restaurant peers, continues to deliver strong trading and, until the credit crunch, had been earmarked by Mr Tchenguiz as a candidate for a stock market flotation some time this year. The division is made up of about 90 Slug and Lettuce outlets, 80 La Tasca eateries and 26 HA! HA! Bar & Canteen units. It has a further 30 or so sites awaiting conversion to one of these concepts.

R20 could not be reached for comment.

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