A MAJOR restaurant and bar in York city centre is standing empty and boarded up after falling victim to the credit crunch.

Old Orleans, in Low Ousegate, claimed to bring to diners the “most sumptuous and tempting fare” from New Orleans, influenced by Creole, Cajun, West Indian, German and Italian cultures. But now it has been closed down by its owner Regent Inns as part of a drive to cut the company’s debts and operating costs.

A company spokeswoman said today that the closure in York had led to the loss of four full-time jobs, along with an undisclosed number of part-time staff.

She said that the restaurant was one of 14 sites within Regent Inns’ 95-strong estate, which also includes Walkabout, Quinceys, Bar Risa and Jongleurs, to be marketed for sale.

However, York was one of only three to have already closed its doors.

The decision to shut the restaurants comes after Regent Inns issued a profits warning in the summer, which it blamed on the credit crunch.

The group said then it expected pre-tax profits to be “minimal” for the year ending June 28 because of a “substantial reduction” in like-for-like sales in its entertainment division.

It said it had been hit by a series of negative factors including the smoking ban, falling consumer confidence and the rise in alcohol excise duty in the Budget in March. It said the Chancellor’s decision to increase taxes on alcohol had “served to widen the gap” between on-trade sales of booze in bars and off-trade sales, such as in supermarkets. It also said its venues were largely based around partying and people’s feelgood factor, but disposable incomes had taken a “real hit” and there were pressures on utility bills and food prices.”

Signs put up outside the York property by Fleurets estate agents of Leeds indicate that the leasehold on the bar and restaurant is for sale.