Bartrader, the pub co-op led by hotelier Hugh O'Regan, is totally reassessing its business. The group, which aimed to secure bulk discounts from brewers, using an Internet-based trading system, has sought five redundancies, which will halve its workforce.

A High Court action against Guinness Ireland meant the coop, which claims 400 members, was unable to guarantee supplies by April next year, Mr O'Regan said.

The best it could hope for was delivery by the second half of next year, if its action against the brewer was successful.

However it may decide to abandon its action due to legal fees. Mr O'Regan said a decision would be made in January.

The High Court had made an order for costs of £470,000 if the action was to continue, bringing Bartrader's projected costs to £1.2 million.

The case followed Bartrader's failure to secure an injunction against Guinness on two grounds: that the brewer agree to supply its members and deal with the co-op.

Bartrader is examining other options, including offering training and human resources services to the bar business.

Mr O'Regan and a consortium of other publicans - including Mr Liam O'Dwyer and Mr Louis Fitzgerald - control 40 per cent of Bartrader, whose establishment last May was followed with a heavy advertising campaign. The remaining 60 per cent bloc was held by the co-op's members.

Bartrader aimed to introduce an Internet-based system. Mr O'Regan said the dot.com slump earlier this year was another factor in its reassessment.

The group aims to secure bulk discounts from brewers. Irish publicans have claimed their counterparts in Britain, many of whom are owned by large groups with more than 1,000 outlets in certain cases, can secure beer on better terms from brewers.

Pub business insiders have claimed certain brewers operate a selective discounting scheme, which favours some publicans over others who purchase similar volumes from suppliers.