The owner of the Walkabout and Bar Risa chains heaped disappointment on investors by revealing talks over a bid for the group had ended.
Regent Inns, which also operates the Jongleurs comedy clubs, added a further blow when it said trading conditions continued to be difficult, with off-peak business under pressure and a small number of sites operating at levels below expectations. It said: "Trading conditions on the high street were difficult after the New Year and this has continued to be the case.
"Walkabout and Jongleurs have generally traded robustly.
However, off-peak trading has fallen and, in addition, a small number of sites have traded below expectations due to particular competition and licensing challenges.
"A variety of management actions are being taken to address these issues."
Regent had kept the identity of the suitor secret but speculation centred around Iranian property tycoon Robert Tchenguiz and private equity firm Alchemy.
Reports yesterday also said Regent will continue to consider other takeover offers as well as making its own bids for rival operators. he group announced it had received an offer at the end of April.
In a statement, Regent sought to reassure investors, saying it was well positioned to benefit from improved trading as a result of the football World Cup.
It added the company was "confident of the ongoing prospects for Walkabout and Jongleurs".
