Regent Inns, the pub company, said that it is considering a number of bids after sales fell 11 per cent this year.

Companies whose names have been linked to a bid include Brook Leisure, the British nightclub operator; US buyout specialist Sun Capital Partners; Alchemy Partners, Jon Moulton's private equity company; Novus Leisure, which owns the Tiger Tiger bar chain; and Laurel Pub Company, backed by Robert Tchenguiz, the Iranian-born entrepreneur. It is understood that Sun Capital Partners is the front runner, but they are not yet in exclusive talks with Regent management.

Regent Inns said yesterday that talks with potential bidders were continuing, but there was no certainty that an offer would be made, and declined to comment further.

The owner of Australian-themed Walkabout bars and Jongleurs comedy clubs has been hit by the smoking ban, falling consumer confidence and the increase in alcohol duty announced in the Budget. Walkabout sales may have been hit by a reduction in the amount of work that some Australians on holiday visas can do in the UK.

Regent said that it has seen like-for-like sales decline by 11 per cent in the period from December 30 to May 14.

The company said: “This downturn in sales has principally arisen in Walkabout, whilst Jongleurs has continued to trade robustly.”

Its restaurants business, mainly focused on the Old Orleans chain, has performed well, with steadily improving sales since the start of the year.

Regent has suffered from gradually declining sales for more than a year. It was forced to issue a profits warning in December after a 3.8 per cent fall in like-for-like sales and a two thirds drop in pre-tax profits to £1.2 million in the six months to December 29.

Regent's share price rose 4.7 per cent to 16.5p yesterday on the back of the bid speculation.

Alistair Darling announced in the Budget in March an increasing in tax of 4p on a pint of beer, 14p on a bottle of wine and 55p on a bottle of spirits.

The company, which has 63 Walkabout and Jongleurs bars, and 31 Old Orleans sites, is selling off non-core assets worth about £25 million in a bid to reduce its £80 million pile of debt.

Regent Inns is not alone in suffering. Sports Café Holdings and the Massive Pub Company have gone into administration in recent months, and Mitchell & Butlers, the owner of All Bar One and O'Neills Irish-themed pubs, has given warning of a slowdown in sales.

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