The owners of brewing company tonight said falling beer sales caused by the credit crunch led it to call in administrators, putting 1,000 jobs at risk.

The fate of 100 pubs also hangs in the balance at Cains Beer Company while administrators PricewaterhouseCoopers work with staff and landlords to keep the business going and find a buyer.

Cains, which runs pubs largely in the North West, has been battered by rising costs, the impact of the smoking ban and a disputed tax bill.

It reported widening half-year losses at the end of July, at £4.6 million against £697,000 in the same period last year.

Sudarghara Dusanj, who held the title of chief executive and took over Cains six years ago with his brother Ajmail, said since last year pub sales had dropped by between 15% and 20% and the credit crunch had helped to “cripple the business”.

The Dusanj brothers completed a reverse takeover of former Preston-based pub operator Honeycombe Leisure last year to create a stock market-listed firm which brewed and sold its own beer.

He said: “I can appreciate staff and others outside the company looking at it and saying we have moved very quickly but sometimes in business you do calculations and risk analysis but what you don’t predict is the downturn and credit crunch.

“We are sad because of all the hard work from everybody over the last six years. From the city, customers, suppliers and our staff and work force. A foundation has been built.”

Mr Dusanj said he hoped the administrators found a buyer for Cains.

“I just hope it continues, Liverpool deserves a great brewer.”

Speaking last week Sudarghara Dusanj admitted he was “concerned” about jobs at the company following talks over the repayment of a tax bill.

The total amount of the HM Revenue and Customs bill has not been released.

The Dusanj brothers had reportedly last week pledged more funds to try to save the business and its 158-year-old brewery.

But the firm said it had failed to reach agreement with Bank of Scotland after running into cash flow difficulties.

David Chubb, PWC partner and joint administrator, said: “Cains is a well-established business with a great brand and brewing facility which has been brewing ales since the mid-19th century.”

He added: “It is currently our intention to continue to trade both the brewery and pub chain businesses and we will seek to achieve going concern sales over the coming weeks and months.

“We have already received some early indications of interest and we would also invite any parties interested in acquiring either the brewery or pub chain businesses to contact us as soon as possible.”

Cains has won a number of awards for its ales, most recently the World’s Best Fruit Beer in the World Beer Awards 2007.

It is also a major supplier of own label beers to the supermarket sector, with popular brands such as Cains Formidable Ale and Cains Lager.

The Dusanj brothers took over the Robert Cain & Co brewery in July 2002, promising to return it to its former glory after years of under-investment.

Cains’ pub portfolio includes 26 freehold and 76 leasehold pubs, most of which are managed houses.

Workers spoke of their shock at the announcement at Cains’ brewery on Grafton Street in Liverpool.

Jill Sampson, who works as a payroll administrator and lives in Huyton, Liverpool, said: “We are just shocked. Of course we are worried about our jobs.”

Speaking about the Dusanj brothers, Miss Sampson said: “They were working hard, seven days a week.”

Miss Sampson said staff were told at a meeting at 2.30pm today to “trade as normal” while the administrators try to sell the business.

Dave Fairclough, a forklift truck driver in the warehouse, said: “I thought they (the Dusanj brothers) could have pulled it out of the bag.

“We have had a week and a half of not knowing anything.”

Franny Joyce, North West regional industrial organiser for Unite, said staff at Cains were hopeful a buyer can be found.

He said: “What you have to remember is that this is a successful company and it has been for some years.

“Of course, there is great disappointment to see it being brought to its knees because of a handful of external factors.

“A well-run company, such as Cains was, could have survived the rising commodity prices and the smoking ban.

“But the bank pulled the plug because of the global credit crunch.

“I have promised our members today that we will do everything in our power and work tirelessly with the administrators to find a successful solution to this problem.”