A pub has been shut and its manager banned from running a licensed premises after police said they found an assembly line for selling cocaine and a drug dealer carrying a gun.

The Cambridge, in Glasgow city centre, had been watched by officers for months leading up to the raid, with detectives convinced dealing was going on with the approval of the bar's management.

The local authority has now revoked The Cambridge's licence, and axed the personal licence of manager Kirsty Learmont.

Another firm is preparing to take over the bar, where gangland figure George Redmond was murdered in 2008 and friend John Maguire seriously injured in a drive-by shooting when the Cambridge Street bar was known as The Waldorf Bar.

Police also raided the bar and made two arrests last year in connection with alleged drugs offences.

At a hearing of the city's licensing board, police told how months before the raid officers had attempted to apprehend a customer fighting outside the bar but staff refused to co-operate because they did not want to be seen as "grasses".

The board was then told that last September police began an "intelligence-led operation" focusing on a Cambridge customer and his associates suspected of supplying of cocaine.

Suspect John Muir, of Milton, was found carrying what police said was "a weapon prohibited under the Firearms Act 1968", a knife, cash, cannabis, and "items believed to be related to his drug dealing on the premises". His friend, Peter O'Donnell, of Balornock, was found to be carrying cocaine. Both were sentenced to three years in March.

Police say a search of The Cambridge turned up polythene bags containing white powder and envelopes containing cash. Inspector Tim Ross also told the board Ms Learmont had driven a suspect to the premises.

A board spokesman said: "Licensees have clear responsibilities in relation to the prevention of crime."