Premium Bars and Restaurants (PBR), the operator of the trendy Living Room and Prohibition bar chains, is to part company with its executive chairman as a result of the collapse of Dawnay Day.

Mark Jones, who was parachuted in to rescue the company, then called Ultimate Leisure, three years ago, announced today that he had given the board 12 months' notice of his intention to leave, although a departure date had yet to be agreed.

Dawnay Day held 29 per cent of PBR and had two executives on the board at the time of its failure in July. Since then, 9 per cent has been sold but a question mark hangs over the remaining shares.

Mr Jones said the collapse had come as a jolt as he had worked with the investment firm for many years, including in his previous guise as boss of the Yates pub group. "I've been thinking about my position since Dawnay Day went under," he said.

He said the completion of the move of its head office from Newcastle to Manchester and the successful refocusing of the group on to food sales had also been a factor. "I decided it was time to review things."

He said that the administrators of Dawnay Day had yet to identify a buyer for the 20 per cent holding, and doubts over the ultimate ownership of the shares could hold back a sale. He added: "It is probably not high on their list of things to sort out."

The news of his departure came as PBR, in which the billionaire Reuben brothers have a 32.5 per cent stake, reported a pre-tax loss of £21.4 million for the year to the end of June, including £20.5 million of impairment charges and other provisions arising from a review of property values.

On an underlying basis, it reported a pre-tax loss of £900,000, compared with a profit last year of £400,000. Revenues rose by almost 80 per cent to £66 million following the acquisition of the Living Room and Bel and the Dragon concepts.

Like-for-like sales for the year fell by 5 per cent, although the fall-off in trade since Easter has continued into the current financial year, with the decline widening to 7.4 per cent in the first quarter.

Mr Jones said that customers of its late-night bars were coming out less frequently during the week, while its restaurants were seeing reduced spend per head. "We've been hit by a double whammy," he said.

The group is slowing down capital expenditure to conserve its cash and is attempting to rationalise its estate by seeking buyers for seven of its 48 outlets. The value of those sites has been written down by £6.7 million to reflect current trading.

Mr Jones said that the group's freehold assets had been revalued at £54.1 million, compared to net debt of £41 million. PBR is in negotiations with Royal Bank of Scotland about renewing the facility and he said he was confident of a positive outcome, despite the financial turmoil.

Shares of PBR, which have fallen more than 90 per cent over the past 12 months, were 1p lower at 17.5p in lunchtime trading.

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