Punch Taverns is to sell off thousands of pubs in a major shakeup of its operation that could affect some of its 114 Kent outlets.

Following a strategic review, the company intends splitting its estate of some 6,700 pubs into leased and managed pubs, creating two new independent public companies.

The company owns 96 leased and 18 managed pubs in the county. It said that no decision had been taken on which pubs would be sold and insisted the new strategy was not about pub closures.

Longer term, Punch aims to focus on around 3,000 high-quality leased pubs. At the same time, it is creating a "turnaround" division of 2,200 pubs to sell under-performers whilst working with licensees to boost trade in others.

The overhaul aims to address Punch's falling profits and rising debt. Drinking in pubs is expected to decline by around three per cent over the next few years, although eating in pubs is forecast to grow by 3.5 per cent.

Chief executive Ian Dyson said: "Punch will be positioned to drive long term value by downsizing to a core estate of around 3,000 pubs with the aim of becoming the UK's highest quality and most trusted leased operator."

Analyst Richard Curr, head of dealing at Prime Markets, said it was a bold move: "Punch has struggled with the leased businesses it manages for some years, so this move in one fell swoop puts the troublesome part of the business into a "damage limitation" environment, leaving the performing managed business (Spirit Plc) to deliver the sort of growth the long-suffering Punch shareholders have been waiting for."