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News Article Comments : Pub tenants foxed by debt
Effects of the bad weather, smoking ban, rising beer duty and rent are overwhelming
Sandra and Gary Higginbotham left the Old Fox on Tuesday. They could have stayed for a few more weeks, but then they faced the indignity of being evicted by bailiffs acting for Punch Taverns.
“Rather than give them that pleasure,” Sandra told me on Sunday, “we’re spending the weekend packing, instead of serving beer. We’ll hand the keys over on Tuesday. Good luck to anyone who takes over the pub after us.”
The Old Fox stands in School Lane, a quiet country cul-de-sac in the village of Bricket Wood, in Hertfordshire, between St Albans and Watford. The Higginbothams sank their life savings into the Old Fox. It had always been their dream to run a country pub — but that dream turned into a nightmare.
They ran up rent arrears of close to £13,000, and in June Punch issued an eviction order. At the end of July the local court rubber-stamped the Punch eviction and gave the Higginbothams 28 days to either p
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enterprise lease 21/08/2008 15:16:43 |
Its such a shame , I feel for you Guys ! Its also annoying , when you think that we are meant to be offered the same advantages as the free trade that you cannot obtain beer in an emergency. If Punch we able to deliver as you want the product then you woud not have bought outside of the tie. The beer tie is not only about the inflated rates they charge the tenants , is also & sometimes more importantly about the availability of the product. In essence the supply , Pubco's cannot offer the same service to thier tenants as the free trade get. If we run short we are expected to borrow beer from another outlet or simply go without & that is anti competitive as a free trade pub can obtain beer from any outlet or cash & carry. If by chance we have an unexpectly busy night & end up short we can't obtain another keg until the next delivery unless we either travel to the depot & collect one or borrow from nother pub. We just go without & this of course affects trade. has anyone every explored this avenue ? This post replies to this thread |
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Sam Rice 21/08/2008 16:24:23 |
We were told by our pubco that we could borrow kegs from other of its pubs but we should let the BRM know. Luckliy for me there was a pubco pub that had its delivery the day before me and was very amenable. In the end, i just phoned her and didn't tell Punch and they were none the wiser. We were evicted us earlier this year and our pub is now open under management (third manager since March) and not a very nice place to drink in. it is a shame when decent lessees are forced out by the greed of the pubco but at least we have a life now. edited by: Admin at: 26/08/2008 12:59:00 This post replies to enterprise lease > RE: Pub tenants foxed by debt |
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Inez Ward 21/08/2008 17:18:29 |
Just how many lessees/tenants are under forfeiture or going bankrupt or just handing their keys back? I had a visit from a Punch lessee yesterday, today was an Enterprise lessee, who has just had to walk away, the companies just would not work with them. These landlords could not be viewed as incompetent, in fact quite the opposite! What is going on if we have reasonably efficient operators unable to operate due to the complexities of their business partner? edited by: Inez Ward at: 21/08/2008 17:20:13 This post replies to this thread |
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| enterprise lease 22/08/2008 10:54:00 |
So , has it been established that someone has put forward the notion of the avilability of the supply from pubco's as anti competitive ? Pubco's cannot offer the same delivery options as the free trade. Free trade operations may well be in a position to buy beer if they run short on the same day whereas tied publicans either have to borrow & collect from depot , the depot in some cases being an hour or more away by car. When I collected last time from my depot some 45 miles away I was told by the warehouse man that my car was not suitable for him to lift the keg in to as the boot was too high. He advised me that he was only allowed to put kegs in to vans. If I turned up in a car again the keg sale would be refused as my car was unsuitable. So I have to buy or hire a van now ? If Pubco's are to govern us to buying beers from them then they should be abliged to offer the same delivery options are the free trade are allowed, ie order same day ,cash on delivery. Cashflow is a major factor in a leased / tenanted operation , sometimes you are bound to run out of beer. Once you're out you just can't buy anymore until your next delivery. That is anti competitive if the free trade can buy, & have delivered same day if they run short / out ! My pub will have run out of a certain product & the free operation down the road may well have done the same but he can refresh his supply same day , I cannot. This post replies to this thread |
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| Nigel Maud 22/08/2008 17:28:32 |
We are tied on cider in one pub £121 for 11g not tied in another £70 for 11g for the exact same product... Something has to give soon if pubs are to survive thought this climate. But neither Enterprise or Punch are really bothered as long as they get their rent... This post replies to this thread |
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| Forum user 4093 22/08/2008 20:06:52 |
Those standardised form statements offered by Punch do not reflect the true nature of the relationship between the pubco and the tenant. There is a tendancy not to address very serious situations affecting the pub as well as an inflexiblility with their 'support' system. Rent relief is usually refused or, if offered, come with a harsh payback policy whereby future rent is increased to make up the difference. Pubs struggling through this recession need rent reduction that relflects the change in demand as well as pubco representatives who are dedicated to working with tenants to find viable solutions. So far they are all talk and no help. This post replies to this thread |
