The battle for Oxford's Morrells brewery took a dramatic turn today with board member Margie Eld quitting after 54 years.

Mrs Eld staged a walkout from a board meeting at the brewery in St Thomas's Street in protest at what she called the "needless destruction of the family business".

Her resignation took fellow board members by surprise. She said: "I think they were startled. I find them totally money-orientated. The good of the people who have worked loyally for the company is totally disregarded."

The grand old lady of the Morrells family had led a bid to buy up 57 per cent of the company's shares. It was mounted with her son Charles Eld, the recently sacked chief executive of Morrells.

But the failure of the bid led her to warn that all the company's assets could now be sold off, causing mass redundancies.

Blowing wide open the bitterness of the feud, Mrs Eld, 76, said: "Since the death of my brother in 1995, the majority shareholding in the company has fallen under the control of trustees. I am resigning because I wish to dissociate myself from what I have no doubt is their intention to close the brewery.

"Part of the family, who between us own 33 per cent of the shares, formed a bid group in an attempt to buy the 57 per cent of the shares held by the four Morrell family trusts." She said two bids for the shares had been refused, with potentially disastrous results. "I am convinced that the new management intends to sell all the assets of the business as quickly as possible and to make all employees redundant.

"I find it ironic that, after a change in the trustees, the same three trusts, which were set up to preserve the family business, are now determined to destroy the company.

"We have exhausted every avenue open to us to try and save Morrells Brewery, although our latest offer remains on the table for the time being. I am sad to be leaving after all this time. The brewery has been a major thing in my life."

The dismissal of Charles Eld, who was escorted from the premises, sparked fears that the firm was ready to sell its 130 pubs and the historic brewery. Many publicans are convinced village pubs throughout Oxfordshire will be sold for housing.

The company's new chief executive and chairman, Ken Hodgson, insists that the company is still awaiting the outcome of a review by accountants Coopers and Lybrand. But Mrs Eld says the accountants presented their report in March, with the trustees accepting their recommendations.She said company articles preventing shares being sold on the open market meant the only way the trustees can dispose of the brewery is by selling all the assets of the business.

Mrs Eld said: "I am appalled by this situation because the company remains strong and is performing well."

Charles Eld commented: "It's a sad day when my mother feels she has to resign from a company, having served it so loyally for 54 years. But it is a measure of her feelings about what is going on." Mr Hodgson, for the company, told the Oxford Mail that the firm hoped to clarify its plans by the middle of July. He said the accountants' review necessarily involved "valuation of some of the company's assets."

Morrells was founded in 1782 and is now Oxford's only brewery. Mrs Eld's father James Morrell and brother Colonel Bill Morrell both served as managing director and chairman of the firm.

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