Anxious Morrells' staff and publicans will learn whether the brewery has a future at a crunch meeting next Thursday.

The new chairman and chief executive, Ken Hodgson, has asked all employees and pub tenants' representatives to attend.

Mr Hodgson called the meeting after Margie Eld quit the board to end 54 years' service, in protest at what she called "the needless destruction of the family business".

Mrs Eld, 76, a member of the Morrells family, had warned that the company's assets were to be sold off, with mass redundancies. In his letter to 90 Morrells employees, Mr Hodgson said: "At today's WEDNESDAY'S board meeting Mrs Eld's resignation was accepted with regret.

"I am now pleased to be able to tell you that I will be meeting all employees and tenants' representatives on July 9 at which time the future of the company will be clarified."

One Morrells' employee said: "All we have been told is what's in the letter. There are a lot of very worried and demoralised people here. Some are looking for other jobs already."

One publican predicted that the most profitable pubs would be sold as a block, with many village pubs sold for housing. "But I think the brewery will be the first thing to go for development. The St Thomas' Street site must be worth millions and that will be the end of 200 years of brewing."

Mrs Eld, whose son Charles Eld, was recently dismissed as Chief Executive, added to fears when she said after staging her walk-out:"I am convinced that the new management intends to sell all its assets as quickly as possible and to make all employees redundant. I am resigning because I wish to disassociate myself from, what I have no doubt, is their intention to close the brewery."

Her son, who was escorted from the building, has notified the company that he intends to go to an industrial tribunal for unfair dismissal.

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