Fears are mounting that the Oxford brewery Morrells is ready to sell off its 130 pubs after the forced departure of long-time boss Charles Eld.

A boardroom bust-up, which saw Mr Eld escorted from the building, has also sparked speculation about the future of the ancient brewery in St Thomas' Street.

Mr Eld, managing director for ten years and a member of the Morrell family, is now taking legal advice about going to an industrial tribunal for unfair dismissal.

Insiders put the sacking down to a major disagreement with other members of the beer family about the company's future direction.

Mr Eld was the man behind an ambitious plan to modernise the brewery. After his departure the brewery said it needed to raise additional finance. The company also appointed accountants Coopers & Lybrand to carry out a strategic review of the firm's future.

Mr Eld, of Charney Bassett, near Wantage, yesterday confirmed that he was escorted from the premises, returning the following day to clear his desk. He said: "I am now receiving legal advice about taking the matter to an industrial tribunal. I cannot comment further."

One of the company's tenants said: "Nobody has told us what's going to happen to the brewery or our tenancies.

"Charles Eld fought to keep the business going as an independent brewery but now he's gone."

Another tenant said: "There are all sorts of rumours. But nothing official is coming out. We keep trying to get hold of company reps but their mobile phones are switched off."

Louis Gunter, former head brewer for Morrells and now a shareholder with the company said: "All I know is that Mr Eld has gone.

"It is extraordinarily difficult to get any further information.

"It must be very worrying for tenants with all these rumours flying about but I am sorry I cannot give them any information which might ease their fears." or crystallise the situation."

Over-capacity in the industry has seen a wave of brewery closures. Whitbread closed breweries in Cheltenham and Castle Eden while the site of Gibbs Mew brewery in Salisbury was sold for development. Speculation that Morrells was having its assets valued was further fuelled when tenants reported seeing people outside pubs taking photographs. The company's Lion Brewery in St Thomas' Street is on a site worth millions, in an area of the city ripe for redevelopment.

Mr Eld joined the company 18 years ago. He is succeeded as Chief Executive by Ken Hodgson, who has also assumed the role of chairman.

Morrells' marketing manager, Wilma James, said the company hoped to be able to clarify its plans to pub tenants and employees by the middle of July. She said the re-financing exercise would be looking at "every option."

She added: "At this stage Coopers and Lybrand are continuing to advise us. Until we have had that formal advice we have nothing more to say."

"As far as Mr Eld's departure is concerned, that is a matter between him and the board."

In a statement after Mr Eld's departure Mr David Griffith, who stood down as chairman to become deputy chairman, said: "Morrells operates in a market which is becoming increasingly competitive.

"The directors consider that Morrells is at a crucial stage in its development and have undertaken an extensive review of the business and our marketplace. Our main conclusion is that if Morrells is to compete in the future as effectively as it has in the past then we need access to additional financial resources."

Morrells was founded in 1782 and is now Oxford's only brewery. The first brew house on the site was created in 1570.

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