Struggling Balls Brothers is rescued by deal with fast-expanding Novus

A City institution was rescued today when one of London's fastest-growing bar chains took control of Balls Brothers.

The 19-strong Balls Brothers, established 150 years ago as a wine merchant, became a favoured drinking hole of financiers and journalists alike in the days when company credit cards were considerably more elastic.

Lately, it had fallen on hard times and sank into administration last November owing Barclays Bank an estimated £7 million.

Novus Leisure, the new owner, did not disclose how much it is paying for the wine and champagne bars, but it is likely that it paid a small premium over the debts of perhaps £8 million in total.

Since its troubles emerged, Balls has been linked with several buyers, including the Kornicis Group, owner of Jamies Wine Bars and Henry J Bean's.

Balls Brothers was acquired by the Lewis & Clarke bar chain for £14 million in 2006.

Novus, whose Christmas like-for-like sales were up nearly 8%, said the Balls Brothers business would help it expand in what it called its "heartland" of the City and West End.

It owns the Tiger Tiger chain, as well as Babble, Jewel and the Zoo Bar in Leicester Square. It has 38 venues.