BOSSES at Thwaites have announced a range of cuts as the company battles a drop in business brought on by the economic crisis.

Up to 86 workers at the historic Blackburn firm face the axe as the company looks to transfer 37 of its pubs to tenanted or leased operations.

Details of the pubs have not been released. However a Thwaites spokesman said six would be affected in East Lancashire and the rest were from across the north and midlands.

The spokesman pledged that they were committed to finding tenants and did not want to close any premises.

As a result of the cuts, 55 pub manager roles and 31 head office staff in Blackburn are under threat of redundancy.

The company’s managing director, Peter Morris, said the proposed losses were the result of reduced spending in its pubs during the tough trading climate.

He said: “We find ourselves in a very challenging situation indeed. Lower business volumes and exceptional cost increases have combined to cause unprecedented pressures on profitability.

“We are also mindful that market conditions may well deteriorate further before we see any signs of improvement.

"It is a fact that trading conditions are the toughest in modern times, but we hope that the measures outlined will put us in the best shape to emerge from this downturn in a position of strength."

Mr Morris said that five of the company’s larger pubs with letting bedrooms, including The Fernhurst, Bolton Road, Blackburn, will remain as managed operations, but will transfer to the Company’s hotel division Shire Hotels for day-to-day operation later this month.

The proposal could see former managed pubs occupied by a tenant who rents the building from the company and is then responsible for the fixture and fitting of the pub.

Thwaites has almost 400 tenanted pubs and employs 2,258 staff across the UK.

A consultation process has now begun with staff and the restructuring is expected to be complete by the middle of the year.

The announcement follows a tough 2008 for the company when it announced that pre tax profits to the end of March last year were down £2.8million on the previous year.