City Centre Restaurants is to sell three of its chains in an effort to kick-start the business.

Alan Jackson, who joined as executive chairman last week, said he was looking for a buyer for Deep Pan Pizza and signalled two more chains were up for sale.

He said he wanted to focus on fewer brands to allow "management to spend its time more effectively".

He added: "I believe the company operates some excellent brands but equally has some issues that have to be addressed."

A spokesman said only two of the company's seven chains were definitely safe from Mr Jackson's cull, Garfunkels and the US-Italian diner Frankie & Benny's. Two out of Caffe Uno, Est Est Est, Wok Wok and Chiquito's would go.

He said: "We cannot be any clearer for commercial reasons."

The move came as City Centre revealed a £2 million slump in pre-tax profits for the year to December 31.

Pre-tax profit for the year came in at just under £16 million, compared with £18.1 million a year earlier. Turnover rose to £217 million from £205 million.

Deep Pan Pizza, which consists of 54 restaurants, posted a loss, as did Wok Wok and Caffe Uno where profits fell by 15.2 per cent, due to a fall in like-for-like sales and increased labour costs.

Profits at Garfunkels, which includes 21 airport restaurants, shot up by 6.5 per cent and Mr Jackson said Frankie & Benny's achieved profits 42 per cent higher than in 1999, as ten new restaurants were opened during the year.

A further 15 sites would open this year, he added.

City Centre has been the subject of bid speculation since it reported a fall in interim profits last September.

It rejected a £126 million offer from Pizza Express in November and was thought to be close to selling Deep Pan Pizza.