The Coach and Horses in St Pancras, Chichester, closed earlier this month.
Matt Kearsey, director of Hall and Woodhouse brewery, said the smoking ban had been devastating.
'The Coach and Horses is a drinks-only pub which has unfortunately become unviable following the smoking ban,' he said.
'Despite advertising the pub for over 10 months we have not been able to find a business partner and it is now being marketed with the intention of developing the land for housing.'
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