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Business Support : Six month in pub lessee needs help badly
Joanne Holdsworth
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Hi
I am six months in to a ten year lease with enterprise inns.
It is a two year tie. I am in a position where I have built the pub but cant catch up financially.
As I am past the ninety days but well in te first two If the pub isnt working financially, what can I do to get out of it? Am i looking at bankruptcy as my only get out? Very confused and stressed. Any advice would be greatly appreciated.
| Author Name | Opinion | Reply |
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Matthew Evans 04/09/2008 15:18:25 |
Six month in pub lessee needs help badly Hi Joanne The strict legal position is that you are bound by the terms of the lease and so have no right to either surrender or assign. You can only ask Enterprise to review the situation. Given the appalling state they are in at present they should do just about anything to keep you afloat, you must be one of very few people to sign such an agreement in the last 6 months. You must be a very long way off your business plan that you submitted, do you know why? Have you discussed this with your RM? As you have only been in 6 months I would have hoped they would be calling fairly frequently. If you want help you will need to have your figures available: turnover, expenses, stock takes etc. Did you take the pub via a broker or estate agent if so they may be prepared to act on your behalf as a go between? Most of all you need to be clear about what you need to keep going and whether or not you wish to. If you need to be rent free and or FOT to make it stack up that isn’t going to happen and you should tell them you are going to have to surrender one way or another. They need to decide if they are better off getting rid of you or sticking with you. Enterprise got themselves into the mess they are in partly by believing there would always be someone else to run the pub, by now they must know that is not usually the case. This post replies to this thread |
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Stephen Corbett 04/09/2008 16:00:12 |
Six month in pub lessee needs help badly Joanne, Please call David Morgan from Cookseys DMP 01454 419900 This post replies to Matthew Evans > Six month in pub lessee needs help badly |
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| eddie robinson 05/09/2008 18:22:37 |
Six month in pub lessee needs help badly Joanne, do yourself a favour and salvage whatever you can before you walk away. Successful tenants with Enterprise are as rare as hens teeth and as you're in trouble already, success isn't going to happen. Even if it did they'll just bleed you dry ....it's what they do. This post replies to Matthew Evans > Six month in pub lessee needs help badly |
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| Joanne Holdsworth 08/09/2008 11:56:05 |
Six month in pub lessee needs help badly Hi Just a quick update on the situation. Given the current climate in the industry, eenterprise have really supported us. With a new recovery structure in place I can now see light at the end of the tunnel. Thank goodness for that as I've always hated packing. This post replies to this thread |
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| Stephen Corbett 08/09/2008 12:13:53 |
Six month in pub lessee needs help badly Joanne, could you expand on how Enterprise have helped you please? This post replies to Joanne Holdsworth > Six month in pub lessee needs help badly |
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| Tony Preston 08/09/2008 23:59:03 |
Six month in pub lessee needs help badly It sounds very encouraging that Enterprise is helping. Of course, with a FTSE close of 286 and them on the verge of being kicked off the FTSE after losing 53% of their share value over the last 52 weeks, they are going to be looking to keep every penny they have (and that’s your and our rent and inflated beer price and cellar cooling, gaming machine and insurance mark-up amongst others). I too would be very interested to find out how they are helping you and what type of a discussion you had with them to get them to help you. We currently owe around £53,000 in total to ‘people’, with the tax/VAT man wanting some £17,000 of that. I would very much like them to help us, so do have a keen interest in how you went about things. Do you have to ‘pay back’ the help in the future? Are there any catches, or are they genuinely helping pure and simple? Interesting point – if the rent is 50/50 of Net profit, do they give money back if you make a loss... This post replies to Joanne Holdsworth > Six month in pub lessee needs help badly |
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Nigel Wakefield 09/09/2008 06:43:04 |
Six month in pub lessee needs help badly Joanne, have you signed an agreement that says that you cannot show the terms of this package with anyone other than your banker, accountant and stocktaker. You cannot consult with a solicitor etc without their express permission, if you have signed any such agreement you need to get legal advice as to what you have been committed to and any repayments that may be enforced. If however the leopards are changing their spots and this is serious attempt to help struggling and failing lessees, it would be at least a step in the right direction, but my cynical mind and the amount of people on one sided rescue packages I think the leopards spots are still there. If it is genuinely beneficial it may be purely a publicity ploy to take to the Select Committee Enquiry to take the heat off any form of investigation into the problems with failing lessees and their draconian methods when their lessees hit trouble. If you can email me with brief details of the package at info@buyingapub.com and any repayment details I would appreciate it, if there are no repayment conditions I will put it on the web site to help others in similar circumstances. This post replies to this thread |
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Ewan Turney 09/09/2008 11:29:09 |
Six month in pub lessee needs help badly Hi Joanne, Could you give us a call on 01293 610 481. Would like to know more details about the recovery plan. Thanks Ewan Web editor This post replies to Nigel Wakefield > Six month in pub lessee needs help badly |
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| eddie robinson 09/09/2008 16:17:38 |
Six month in pub lessee needs help badly The 'recovery plan' will be a discount of £100 per brewers barrel for a limited period of time, perhaps a month. In other words, Enterprise sell you beer at a slightly less extortionate price for a while then crank the price back up again when it suits them. If they charged the market rate for beer these 'recovery plans' wouldn't be necessary and there'd be a lot more successful pubs. You'd have thought that someone in the company might have spotted that but its too late for them now. This post replies to Ewan Turney > Six month in pub lessee needs help badly |
