THE future of one of Cornwall's oldest breweries was thrown into doubt this week after it went into administration - threatening the jobs of its 26 staff.

The 300-year-old Redruth Brewery went into administration on Monday, the day its account returns were due to be handed in.

Five jobs have already gone, but the company, based in Foundry Row, will con- tinue operating until a meeting of creditors in ten weeks' time.

The problems at the brewery come hot on the heels of the closure of the CompAir Holman factory in Camborne, with the loss of nearly 200 jobs.

The news adds further economic gloom to an area which, despite the availability of Objective One money, is struggling to achieve an economic turnaround.

Redruth Brewery has been put into administration under the new streamlined fast-track procedures introduced by last year's Enterprise Act.

Insolvency specialist Ian Walker, of Exeter-based Begbies Traynor, said the company had to be put into administration because creditors were knocking on the door and it was the only way to save it from going under.

"The company has been losing money for some time," he said.

"They were coming under a lot of pressure from creditors for outstanding duty and something had to be done.

"The company was put into administration purely by me to sort out the best way forward.

"The whole purpose of the new procedures is to try to save the company. If that's not possible, I would sell the business, and if that is not possible I would realise the assets, but I am very much focused on saving the company."

Mr Walker said it was too early to say whether that was possible, but he had already had one phone call concerning its future.

He said he had the chance to be very creative with the business, downsizing, increasing capacity or changing it entirely.

The mood among the employees at the brewery is said to be resigned, but everyone is optimistic that the company can remain a going concern.

Mr Walker said: "We will be working hard over the next weeks and months to pinpoint the exact causes of the brewery's difficulties, though under-capitalisation, general market conditions and competition will probably all have played a part.

"We will draw up plans for its future based on what we find and will report to creditors within eight weeks, with a creditors' meeting within ten weeks. Obviously we will be trying to preserve a viable business, for the sake of its employees and the wider community, as well as for the creditors."

Camborne Falmouth MP Candy Atherton said there had always been an open door to the company to work with her in the past.

She said: "I have worked to secure Government support through regional selective assistance and also seeking a sympathetic hearing from the Inland Revenue and Customs and Excise.

"But there have been difficulties and I have been in discussion with the company in the last few weeks. They have a good business with a central location and good contracts. I hope very much the company will be able to come up with a solution for the long term regeneration of the area."

Redruth Brewery carries out contract bottling and canning, as well as brewing its own beers for the South West market. It supplies beer to two national supermarkets, Aldi and Asda, and it is hoped that the contracts can continue for the foreseeable future.

The brewery was acquired in a blaze of publicity in May 1995 by the Hong Kong-based Dransfield Group. The move came after the company went into administration for the first time. A period of reorganisation followed resulting in a flexible operation with a multi-skilled workforce.

New brands were established and these became very much a part of the UK beer scene with sales through major supermarkets and many other outlets.

However, the company was later taken over by an unnamed associate of Dransfield, which acquired its shares.

Management and staff at the brewery have remained much the same as under Dransfield's o