PUB and club entrepreneur Margot Grimshaw has backed Daniel Thwaites in its bitter row over losing out on a lucrative contract to supply beer to Blackburn with Darwen Council.

The £300,000 contract was awarded to Belgian-owned Interbrew, which bought out Whitbread's brewing interests earlier this year.

Brewery bosses were 'puzzled' to miss out on the three-year deal to supply council-owned venues such as King George's Hall.

Even though council officials insisted they had followed the correct procedures, Margot Grimshaw said common sense needed to be applied.

"When I started out in Blackburn, the town had three breweries," she said. "Now, we only have Thwaites left and I am sure they must be one of the biggest employers in the town.

"I would have thought that the local council would support local businesses which is why this decision is rather sad."

Mrs Grimshaw, whose pub and club empire includes Bar Ibiza, Never Never Land, Khaz Bar and C'est La Vie, is supplied by Thwaites and said the brewery had always been reliable.

She said using a local supplier meant there were none of the environmental problems posed by long-distance haulage.

Steve Rigby, senior assistant director of community, leisure and cultural services, said the contract had been awarded to the company that offered the best price.

He said: "All bids were subject to a fair evaluation process which was approved by the elected members."