ONE of the most successful small businesses in the Medway towns has been rescued after it went into receivership.

The Flagship Brewery went into receivership in early June, but within days a rescue bid for the company -- but not its debts -- had been agreed.

It has been bought by Angelica O'Hanlon, of the Nelson Brewing Company, who recently acquired the Little Crown in Chatham High Street to add to a handful of pubs she has acquired in north Kent.

The relaunch coincided with the unveiling of a new light ale. Nelson's Beer will be added to Flagship's range of locally-created beers.

It will sell alongside the other naval-associated titles that have tied Flagship to the dockyard including Ensign, Powder Monkey , Crow's Nest and Nelson's Blood

The brewery has also helped two popular ship restoration schemes in Medway, Paddle Steamer was sold to raise funds for the paddle steamer Medway Queen, and Destroyer brewed to help save HMS Cavalier now in the dockyard. It even produced Gillingham's Special, a beer to mark the demise of the old borough.

Ms O'Hanlon said: "We are trying to rebuild the relationship with the Dockyard Trust which the old brewery had."

She paid tribute to the brewery founder, Andrew Purcell, who she said had "worked his guts out" to try to save the business, but added: "At the end of the day the only thing to do was wind it up."

She said: "My company has negotiated with the receivers and the valuers, and we have now bought the business, but not the liabilities."

Mr Purcell will continue to work for the new brewery owners, along with all his staff. He founded the business after being made redundant by Dartford council. He said: "It is back to basics."

But the company's pub in the dockyard -- the Harbourmaster's -- has shut for the last time. The old company had to surrender the lease to the Chatham Historic Dockyard Trust, and was clearing the premises on June 13.