A Yarm pub manager is taking legal action against her former employer for unfair dismissal.

Lilian McNaughton, who worked in the Ketton Ox for 22 years and was manager from 1995, was told in February by Barracuda that, following refurbishment to the pub, a new manager would be employed to run the new-look sports bar.

After refusing an offer of an alternative management position in a pub in Chester le Street, Mrs McNaughton's contract was terminated.

The 55-year-old grandmother now has no job and no home, and is having to stay with her daughter in Eaglescliffe.

Mrs McNaughton claims that, because of her age and the fact that she did not like football, Barracuda felt she would not suit the pub's new image.

A letter to Mrs McNaughton from Barracuda area manager Paul Cutsforth, said: "I can confirm that after the refurbishment of the Ketton Ox, you will no longer be the manager as the style of pub is changing dramatically from the current traditional public house format, to a Smith and Jones-branded format, which we feel is not suited to yourself for the reason explained at the meeting."

It added that the relocation offer to Chester le Street was a "genuine attempt" to try to keep her in the company, and that Barracuda did not wish to lose her services.

Mrs McNaughton, who is a member of the British Institute of Inn Keepers, said that she was devastated and for the first time in her life was taking anti-depressants and sleeping tablets.

"I feel humiliated and have lost all my dignity due to the way they have done this," she said.

"It's so unfair to say that, because I don't like football, I don't fit the image. I don't like beer or lager but I still served them.

"I loved my pub. It's one of the oldest buildings in Yarm and steeped in history.

"I didn't want to move to Chester le Street because my life and family are in Yarm. I'm just trying to hold things together. I've had lots of support from local businesses, neighbours and customers."

An e-mail was sent to Barracuda on behalf of 70 Ketton Ox customers in support of Mrs McNaughton.

Regular Dennis Howard, of Eaglescliffe, said: "What they have done to Lilian is disgusting and very unprofessional. She never had any trouble in the pub and was very efficient. She was a good landlady.

"I started going to the Ketton Ox in 1977 but I won't be going back there now."

A spokesman for Barracuda said: "We are still discussing a number of issues with Lillian McNaughton and believe that it would be unprofessional and inappropriate to publicly comment further at this stage."