THE landlord of a popular Plymouth pub has locked its doors and quit the industry suddenly after nearly two decades behind the bar.

Steve Scarff called last orders at The Mermaid, in Eggbuckland, for the final time on Sunday following a bitter fight to stay afloat.

He said the smoking ban, cheap supermarket booze, falling customer numbers and conditions slapped on 'tied' pubs by their breweries had almost bankrupted him.

Now, after remortgaging his house and spending £200,000 of his own cash propping up the business, the veteran landlord is warning more struggling pubs will follow suit.

Steve, aged 50, said: "We've been throwing money at it left, right and centre but getting no return.

"It got to the stage where we were fighting an uphill battle and I just thought, 'That's it - I've had enough'."

Locals reacted with dismay when the news began spreading, while some who have already paid for expensive functions spent hours waiting outside for answers.

Steve is a well-known figure in the industry as the current chairman of the South West Licensed Victuallers Association and a member of the National Parliamentary Committee on licensing.

He had run The Mermaid with wife Sally for 17 years. He is now looking to help out in his son's heating business, while Sally is returning to work in social care.

Customers and 12 members of staff, including three family members, were told the news two hours before closing time on Sunday and, as of yesterday, were out of work.

Enterprise Inns is now searching for new licensees.

When the smoking ban was introduced in 2007, business at the Mermaid dropped off by 38 per cent, Steve said, while rising taxes and business rates coupled with annual rent of around £44,000 to Enterprise meant the couple had to raise £3,500 a week just to break even.

Last week, they had to inject £1,700 of their own cash to pay some of The Mermaid's bills. They are convinced that increasingly cheap booze sold by supermarkets will kill even more Plymouth pubs this year.

Steve added: "We were backed into a corner. If it carries on this way, we're going to lose all our local pubs. I am obviously really sad but hopefully we'll have our lives back again now."

The Mermaid's manager, Steve's cousin Dave Scarff, said it was the "end of an era" for many regulars.

Eggbuckland councillors Peter Brookshaw and Ian Bowyer both said it was "sad news" for the community, and praised Steve's efforts promoting sports such as boxing.

Angela Green and her husband Robert - better known as Jim - were devastated to hear the news, as they first met at The Mermaid while watching the Flower Travellin' Band in 1973.

Anne Dodds, landlady of the nearby Prince Maurice Inn, agreed with Steve's gripes.

"They are experienced publicans and I'm sorry it's happened to them," she added. "This is a sad reflection of the state of the industry."

Meanwhile Richard Smith, Pubwatch chairman and landlord of city centre pub the Noah's Ark, said his area was trading well.