A MUCH-LOVED York Pub has closed because it is reportedly losing money.

The Black Sheep Brewing Company Limited has closed the Last Drop Inn in Colliergate, though it is other city pub, the Three Legged Mare in High Petergate, remains open.

The sudden closure has upset employees and customers of the business, which was recruiting for staff just last month.

The Masham-based brewery was recently bought by London-based Breal Capital for £5m. Black Sheep went into administration with outstanding debts of £6m, much of which is unlikely to be repaid.

Teneo Financial Advisory details administration of Black Sheep brewery | York Press

The pub closure, plus that of The Tap & Kitchen and Mr. Foleys in Leeds, was announced on Friday, with immediate effect.

In a statement, the brewery said it was grateful to the staff at the pubs, saying they had worked extremely hard over recent years to try to bring their pubs back to pre-covid levels. Despite their very best efforts, this has not materialised.

There would also be several redundancies associated with the company’s retail arm in Masham.

A company spokesman said: “Having recently conducted an extensive review of our business, we have explored every angle to try to keep these locations trading profitably, but without success.

"Unfortunately, the only avenue left for us was the closure of these premises. It is always the last resort for us to make redundancies, and we are saddened to see such dedicated colleagues leaving us, at this time.”

The statement added Black Sheep’s other outlets remain unaffected by these closures.

The Last Drop Inn first opened in 2000 and was later acquired by Masham-based owners Black Sheep Brewery in 2018 who brought in manager Alex Higginson.

York landlord 'beyond upset' to close City Centre pub

As previously reported by The Press, Alex said in a Facebook post: "We are beyond upset. Our little pub, that we built from a shell of a building, has to close.

"We had no idea this was happening and so, we had no way of saying goodbye to our amazing, lovely customers, who have helped shape this building from a pub into a community.”

Customers were also upset. One commented: "This is scandalous - the best pub in York!!! Absolutely gutted to hear this . The beer was the best pint in York. Good luck Alex, I’m sure you’ll be a success."

While another said: "So sorry Shannon and Alex, no warning.. such a shock for you. You made the pub what it is today, onwards and upwards."

The Colliergate premises were not owned by the brewery, meaning it could remain as a pub under new owners.

Chris Tregellis, chairman of the York area branch of CAMRA told the Press: “The Last Drop Inn had established itself as a "must visit" part of the York pub scene and its demise is a great loss.

“Let us hope somebody is able to take it over as a pub and make sure it hasn’t served its last drop!”