ADMINISTRATORS have confirmed they are close to selling a troubled North-East pub and club chain to a mystery buyer, in a deal which will secure more than 400 jobs in the region.

Wessex Taverns Group went into administration on March 31, after a slump in trading meant it could not service its high debts.

Joe McLean, of administrators Grant Thornton, said: "Discussions with the potential purchaser are at a reasonably advanced stage.

"The business is continuing to trade as normal at all locations. The group's suppliers and all 450 employees have shown tremendous loyalty and commitment to the group by their continued support."

Wessex, of Whitley Bay, North Tyneside, operates 32 outlets, mainly in the North-East, employing 450 staff.

The deal would see the buyer acquire all the shares in the Wessex group.

Mr Thornton said: "If the shares are sold, the interests of employees and creditors, both secured and unsecured, will have been safeguarded.

"There has been considerable interest from a number of parties, reflecting the potential of the business."

Adminstrators, who had said they wanted a buyer for the entire chain rather than a piecemeal approach, said Wessex had run up significant debts through acquiring and refurbishing venues.

Flagship sites include Newcastle's Pacific Bar Cafe, and two bars in the Quayside.

In County Durham, it owns or operates Bacchaus and Club 2K, in Darlington; the Turk's Head, in Barnard Castle; and Monaco, in Bishop Auckland. Its portfolio also includes The Hairy Lemon, Prague and Vienna in Middlesbrough; and The Unicorn Inn in Richmond, North Yorkshire.

The group got into difficulties after experiencing tough trading conditions this year. All the outlets are trading normally while talks continue.