Pub companies are being urged to help secure the future of for our borough’s best-loved boozers by scrapping rents for local landlords during the coronavirus crisis.
A number of our local pubs now face an uncertain future with many of the big pubcos only agreeing to suspend rent during the crisis that will then be collected when business resumes – something landlords say they can’t afford if they aren’t trading.
Beer campaigners CAMRA are now calling for rent to be scrapped completely during the period of closure to give our pubs a fighting chance for survival when the government allows them to reopen their doors.
The industry regulator The Pubs Code Adjudicator (PCA) , which regulates companies that own 500 or more tenanted pubs in England and Wales, has also contacted the pubcos this week asking for more to be done.
The PCA said: “The Covid-19 emergency creates a threat to the livelihoods of tied tenants.
“Those tenants will need the support of their pub companies if they are to survive in their pubs and to return to profitability once the crisis has passed.”
CAMRA told Gedling Eye that so far, only Admiral Taverns have cancelled rent for their tenants.
They said that Ei Group, Punch, Greene King and Star Pubs and Bars have suspended rent collection but have not cancelled rents.
Marstons have said they are suspending rent collection on a case by case basis
CAMRA Chairman Nik Antona today praised the PCA for putting pressure on the pubcos.
“This is a timely and encouraging intervention from the Pubs Code Adjudicator,” he said.
“From the outset of the COVID-19 crisis, CAMRA has called on pub companies to do the right thing and cancel rents. Admiral Taverns, and other smaller pub companies, have listened to tenants and pub–goers and have cancelled rent for their tenants.
“The rest of the big six pubcos should be following Admiral’s example. Deferring rent collection simply isn’t enough – the pub industry is facing unprecedented challenges and the survival of the trade as we know it is at stake.
“Pub companies pushed for the industry standard model that rents are based on turnover. As we have consistently pointed out, this means that closed pubs should not be having any rent levied on them at this time. Pubcos cannot have it both ways, and Ei Group, Punch, Greene King, Star and Marstons need to follow Admiral’s example immediately and cancel rent.”
Beccy Webster, who is landlady of the Black’s Head and Elwes Arms pubs in Carlton and the Gedling Inn said she feared for the future of her businesses if an agreement isn’t reached.
She said: “Both pub companies I deal with have suspended payments for now but the thought that I may owe in excess of 60,000 if we are closed for 12 weeks is frightening and I just won’t be able to sustain my business if they still want the full total.
“I understand they have a business to run as well so I’m hoping some agreement is made so that the local pubs are able to survive.
Drinkers across Gedling borough are now being urged to help pile pressure on the big pubcos by sending a letter calling for rent to be scrapped instead of suspended. An easy letter template has been created by CAMRA and can be found HERE
CAMRA National Director Ben Wilkinson is hoping people from across the borough will back the campaign.
He said: “When all this is over, lots of us are looking forward to getting to the pub for a pint with friends and family. As CAMRA members, we stand ready to support our locals once again – but we need to make sure that pubs survive this crisis, so they can re-open and thrive in the months and years ahead.
“That’s why thousands of our members will be making their voices heard to pub company bosses who haven’t yet done the right thing and cancelled rent payments for pub tenants.
“With publicans still being charged rent despite being forced to stay closed to help prevent the spread of Coronavirus, we fear for the future of many pubs and for the livelihoods of those tenants affected.”
Gedling Eye contacted the pubcos for comment about the rent claims.
Lawson Mountstevens, managing director of Star Pubs & Bars told Gedling Eye: “We are and will continue to do as much as we can to help our pubs. In addition to the Government’s support and grants to help cover rent, salaries and other fixed costs, Star Pubs & Bars has also suspended the collection of rent and associated charges from our leased and tenanted pubs until at least the end of April.
“We are working around the clock during this unprecedented situation. We know the support we provide on a pub by pub basis over the coming weeks will have a significant bearing on the future sustainability of our licensees’ businesses – and clearly we want to see our pubs thrive in the long-term.”
