Last orders for brewing legend

For some, Oxford without a brewery was just about as unimaginable as Carfax without its tower. But any real hope of survival had already gone.

Weeks of rumour about the future of the historic brewery and its 132 pubs had been followed by the unedifying sight of one of the city's most famous families tearing itself apart in public. Any doubts about the bitterness of the feud were removed when brewery boss Charles Eld found himself being escorted from the building last month.

By the time the grand old lady of the Morrells family, Margie Eld, quit as a director last Wednesday after 54 years, many had already concluded that the brewery was in its death throes.

Her words as she left the Lion brewery were not designed to bring any cheer. "I am convinced that the new management intends to sell all the assets of the business as quickly as possible and to make all employees redundant," she said.

Over-production in the beer industry has seen a wave of brewery closures all over the country this year. Morrell's was thought to be under particular pressure from its aggressive competitor just down the road, Morland, riding high on the back of its Old Speckled Hen brand.

When the Gibbs Mew brewery site in Salisbury was sold for development, it did not go unnoticed at Morrells, itself sitting on a prime city site. By the time the company called in the accountants Coopers and Lybrand to review the brewery's options, divisions were all ready appearing on the board.

Chief executive Charles Eld, supported by other members of the Morrells family, wanted to modernise the brewery to ensure its future as a long term independent. But the majority of shareholding in the company has been under the control of the trustees since 1995 and they were becoming increasingly concerned about the management per- formance.

The brewery was continuing to be profitable.

But the board was persuaded that it was not generating sufficient money for desperately needed investment. Money from a sale looked increasingly tempting.

There were soon reports of pubs being photographed, as it became obvious that Morrells' assets were being valued.

When Mr Eld was sacked last month, after 18 years' service in the company, the new chief executive and chairman Ken Hodgson, 68, was widely seen as an axeman brought in to finish the job.

As speculation mounted about the brewery making way for student flats and village pubs being closed, the company remained silent. But even yesterday's sale announcement leaves many questions unanswered.

Mr Hodgson said: "We cannot say with absolute certainty what the future holds for our 77 members of staff. We will be asking prospective purchasers what their plans are for employees."

Nobody was holding out much hope for the brewery surviving. Mr Hodgson admitted as much himself when he spoke about the difficulties of the financial and environmental difficulties of operating a brewery in the city centre.

Developers, however, will be wasting no time in expressing interest. Pub tenants can be hopeful. "We will be assessing potential purchasers very carefully to ensure that we can sell to someone who has the financial resources to devote the necessary capital," said Mr Hodgson. "All our tenants are fully protected and will benefit." But while the more profitable city centre pubs will be an attractive proposition, the many struggling village pubs could well be sold for housing.

Nobody was drinking to a happy outcome today. Power struggles are not new The bitter power struggle at Oxford's only brewery has its roots in the history of one of the city's most remarkable families.

Divisions between the Morrell family and the trustees, appointed to look after their interests, turn out to be nothing new.

There has been simmering distrust on and off for the best part of 150 years.

The dynasty was founded by James Morrell (1739-1807), the youngest son of Jeremiah Morrell of Wallingford. Successive generations were prominent in local government and the legal profession.

But in the late 18th century the family entered the brewing business in Oxford, as partners of the Tawneys. The brewery was housed in St Thomas' Street in 1782. The family also acquired Headington Hill Hall, later to be home to Robert Maxwell, which remained in the family's possession until sold to the city in 1953.

Problems with trustees first arose after James Morrell died in 1863, and his wife Alicia died the following year. Their only child Emily was left an orphan at the age of ten and all the family assets, including Headington Hill Hall, estates at Culham, Sandford and Blackbird Leys - as well as the brewery - were put under the control of three trustees. When, at the age of 14, Emily fell in love with a distant cousin, George Morrell, the trustees sent her away to live with her aunt at Streatley and forbade them to communicate with each other, although the couple eventually married. But t IFinally, in 1873, George and Emily appealed to the Master of the Rolls who gave them leave to marry shortly before her 20th birthday. The trustees decided that George Morrell should never gain control of her wealth.

In 1926 the trustees planned to sell the brewery. But George and Emily's son James managed to change their mindspersuade the trustees to keep the brewery. They begrudgingly agreed to him taking over as acting brewery manager.

For many years the main source of power was a water wheel driven by the Wareham stream that passes under St Thomas' Street and under some parts of the brewery itself.

During the 1950s many family companies were lost to large national concerns but Morrells remained, under the control of Margie Eld's father James Morrell and then her brother Col Bill Morrell.

Since 1989 there have been upheavals and restructuring as it struggled to compete with big brewers focusing on key brands and strong retail formats.

But to the last Morrells remained a good profitable business. For the trustees,and the few remaining board members belonging to the Morrells family, it was just not profitable enough as the prospect of one big pay out beckoned.

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