A popular city centre bar and micro-brewery faces closure with the loss of 20 jobs unless the city council grants it a late licence for a new premises nearby.

The bleak prediction comes from the owners of The Foundry which is being forced to quit its home in White Horse Lane by the imminent closure of Nasons which owns the building.

They have been offered a new site in the former Chromos building just around the corner in Stour Street.

"There is simply nowhere else we could go. If we can't get the licence, it would put the whole business and everyone's livelihood at risk," said joint owner John Mills.

But the relocation rests on the council's licensing committee granting permission for late opening hours which Foundry bosses say is vital for it to be sustainable.

It is owned by brewers and business partners Mr Mills and Gary Sedgwick who have created a unique, award-winning city centre brewery on the site which attracts visitors and real ale enthusiasts from all over the world.

Mr Mills says they are simply transferring the business to a new location just 50 yards away which is ideal for its needs.

It is applying for a premises licence until 2.30am Monday to Thursday, 3.30am on Fridays and Saturday and 11.30pm on Sundays.

"We have to leave this building by October 8 but cannot afford to be shut for any length of time. Already we are spending money on work on the Chromos building. It's a gamble but we don't have much choice."

But residents' group, the St Mildred's Area Community Society is objecting to the application, claiming it will lead to an increase in late night noise and disturbance.

Its chairman Reg Race says the council would be "flying in the face" of its licensing policy if it was to be granted.

Mr Mills they will argue the Foundry should be considered a special case because the move has been forced on the business.

"This relocation is not of our own making and will cost around £40,000 which is frankly money we haven't got.

"We believe the Foundry is a unique business and an asset to Canterbury. It's not your average late night bar and certainly not a nightclub.

"We have spent seven years building up the business to the point where all the elements are now just turning a profit so we can pay ourselves a proper wage.

"As well as the 20 real ales we brew on site, we are also distilling award-winning gin and plan to produce rum and whisky. All that could go if we don't get the licence."

Mr Mills says his appeal to the licensing committee will be for them to make a special case for the business because of the situation forced onto it.

He also points out that there has never been a single complaint about the way the Foundry has been run and the move would mean one less licensed premises in the vicinity because its existing premises will never be a bar again.

The council's licensing policy now recommends new premises should only be allowed "core" opening hours until 11.30pm weekdays and midnight on Saturdays and Sundays - unless there are overriding circumstances and various criteria can be met.

SMACS chairman Mr Race said: "The policy is quite clear and we consider this something of a test case," he said.

Representations about the application, which can be viewed on the city council's licensing register, close on Wednesday next week.