Halesowen-based quoted firm Innobox remains firmly in the red, interim results for the six months to October 31 have revealed.
Headed by chief executive and Midlands businessman Russell Stephens, it posted a pre-tax loss of £234,300, slightly improved on the £259,125 of a year ago.
Turnover fell to £336,253 from £375,717. Now it is looking for a way to offload its subsidiary companies after taking advice from an insolvency expert.
The company owns and operates two pub/restaurant/hotel sites - The Moss Cottage in Ripley, Derbyshire and The Royal Oak in Leominster, Herefordshire.
It also owns the freehold interest of The Three Tuns in Pettistree, Suffolk, which is leased out to private tenants under a three-year agreement.
The company stated: "Difficult market conditions have unfortunately continued and have in fact deteriorated.
"Anticipated levels of trade over the traditionally busy Christmas period were not up to expectations.
"As a result of these prolonged difficult trading conditions, the directors have taken the advice of an insolvency practitioner to determine the best course of action to provide a maximum return to members and creditors.
"Following these discussions the directors intend to propose a company voluntary arrangement for each of the subsidiary companies Moss Cottage Hotels and I M Hotels and creditors' meetings to consider these proposals are expected to be held this month.
"The AIM-quoted holding company, Innobox plc, is not contemplating any form of insolvency procedure.
"If these CVAs are approved, this will enable Innobox to release its guarantees to the subsidiaries and then potentially dispose of them."
The board is continuing to consider an exit from the licensed trade sector.
The statement added: "We have held discussions with several possible interested parties and the board is hopeful that as a result it will lead to a better outcome for shareholders. Further announcements will be made in due course."
No dividend is proposed.