TWO bars in the region face an uncertain future after nightclub operator Luminar yesterday called time on its ownership of its Chicago Rock Cafe and Jumpin' Jaks chains.

The company said it would sell or demerge its entertainment division after it was hit by tough late-night competition since the introduction of new licensing hours.

Luminar has Chicago Rock Caf venues in Middlesbrough and Chester-le-Street.

The announcement came as the Milton Keynes-based group reported an 11 per cent rise in underlying profits to £43m for the year to March 2, but saw bottom line pre-tax profits on continuing operations slip to £22.9m from £24.5m.

The group, which sold off 64 units in the past year and reduced its debt burden, also said like-for-like sales in the first ten weeks of the new financial year were eight per cent down.

Luminar has been realigning itself to focus on its more profitable nightclubs business. The nightclubs division saw turnover rise ten per cent to £188.6m in the year, while its entertainment division saw turnover drop three per cent to £99.3m. Operating profits were off five per cent at £19.3m.