When there's no ale left, it's time to admit defeat! (3,6,3)

'time to admit defeat' is the definition.

'when there's no ale left it's' is the wordplay.
I cannot really understand how this works, but
'when' could be 'e' (I've seen this in other clues) and 'e' is present in the answer.
'there's' could be 'n' (I've seen this in other clues) and 'n' is located in the answer.
'ale' could be 'bitter' (synonyms) and 'bitter' is found in the answer.
'it' could be 't' (abbreviation. e.g. in 'tis) and 't' is found in the answer.
The remaining letters 'hed' is a valid word which might be clued in a way I don't understand.
This explanation may well be incorrect...

Can you help me to learn more?