Durham bar and microbrewery goes into administration

A high-profile Durham bar and microbrewery has gone into administration only five months after opening in a flood of publicity.

Cathedral's has been forced to shed more than 20 jobs and cut the hours of the remaining 100 staff while administrators from accountancy group Tenon try to plot a future for the business.

Owner Richard Lazenby opened the bar using proceeds from the sale of Mr Lazenby's Traditional Sausages to processed meat giant Cranswick three years ago for £4.5m.

A former publican and chef, he blamed the problems on the opening costs, which rose because of a 10-month delay due to construction difficulties and objections to its licensing application.

The development was originally set to cost £2.5m, but the final bill by the time it opened in August was a higher, undisclosed, sum.

Cathedral's also suffered from poor weather over Christmas keeping customers away, on top of the impact of foot-and-mouth disease and the decline in visitors following the September 11 terrorist attacks.

Mr Lazenby called in administrators from Tenon Recovery earlier this month to negotiate with creditors and turn the business around over the next three months.

Cathedral's, which has a fine dining restaurant and bistro, bakery and coffee house alongside its microbrewery and bar, was created in Durham's former Victorian police station in Court Lane.