Pubcos accused over recruitment firms

Pub companies have been accused of turning a blind eye to the actions of rogue recruitment companies which sublease their sites to unwitting would-be licensees.

Trade leaders and licensees have called on pubcos to act more responsibly and not use these rogue recruitment firms.

Last week The Publican exclusively revealed that would-be licensees who paid money to a company called Greyfriars Taverns and its parent company Barber Lettings were unlikely to get a refund as the group is insolvent.

Barber Lettings was placed into administration in February by Customs & Excise after it failed to register for VAT.

The news followed an investigation by The Publican last year, which found a raft of companies taking money from potential licensees but failing to meet their obligations.

Many who were promised pubs received no offers and those who were placed found themselves in a tenancy at will with no job security.

However, concern has been raised about the role of pubcos in allowing these companies to trade within their estates.

In the case of Greyfriars Taverns and Barber Lettings, Punch Taverns, Enterprise Inns, Avebury Taverns and other operators leased sites to them.

Tony Payne, chief executive of the Federation of Licensed Victuallers' Associations, has been campaigning against these recruitment companies and has slammed pubcos for failing licensees.

He said: "Pubcos should not be using these recruitment firms. They have a big responsibility ."

Kevin Edwards, from Bembridge on the Isle of Wight, lost £4,000 to Greyfriars Taverns in 2003 after it failed to place him in a pub.

He said: "I am disappointed that the big pub groups allow these companies to sub-let. Pubcos are not owning up to their responsibilities."

Francis Patton, customer services director for Punch Taverns, confirmed that Punch had leased 47 pubs to Barber Lettings and related companies.

He said that Punch had carried out as much checking as it could on this company but claimed it would now be looking into tightening up procedures.

He said: "We oppose recruitment companies that charge licensees."

Enterprise Inns said it did not wish to comment.Avebury Taverns was unavailable for comment as this article was posted.

The Department of Trade & Industry has already confirmed that pubcos using such companies could come under scrutiny.