Provence tenants can hand keys back: Kiely

Company will allow forfeiture of any pub lease within 28 days by The PMA Team Pub-owning company Provence has told its licensees that they can hand back their keys within 28 days if they are unhappy. And in a response to complaints from tenants reported int he Morning Advertiser, Provence is to offer more support and to advise licensees on their businesses. The company, which holds head leases on more than 300 pubs, has also promised private investors who have bought freeholds from Provence at London auctions that it will buy back the freeholds if they are unhappy. Paul Kiely, Provence's managing director and sole shareholder, said: 'We will allow forfeiture of any lease within 28 days. Where a tenant is unhappy or aggrieved with his Provence contract, we will release them from their obligation under the contract. 'In the unlikely event that any investor is dissatisfied with his purchase we will buy back any property at the sale price within 28 days of this article.' Kiely's comments come after a number of Provence tenants complained about the affordability of their rents and lack of support from the company. Tenants are offered the chance to run free-of-tie Provence pubs without paying a premium or stumping up for fixtures and fittings. The company insists that its pubs work out cheaper than those offered by more traditional pub companies because licensees pay no in-goings and are free to obtain big discounts on beer and other products. Provence's estate has grown quickly in the past few years as buyers at London auctions have snapped up the freehold investments it has offered. A survey by the Morning Advertiser this week has revealed that Provence has sold 82 pubs at auction since November 2004, netting £35m. Kiely said: 'I still firmly believe that our straight-forward approach - to act as landlord, pure and simple - is more conducive to success of the end user's business. 'However, I can't ignore the fact that a few of our tenants are struggling. I have instructed our commercial lettings department to contact a number of consultants who specialise in advising licensees on all aspects. The service will be provided free of charge to all our tenants.' One Provence tenant, who asked for anonymity, has not paid his £1,200 a week rent since he entered the pub in August because of the run-down state of the pub. The pub was sold at auction for £630,000 in June - a month after Provence bought it for around £325,000. The tenant is taking just £1,500 a week and has spent weeks trying to fix the multiple problems at the pub. He said: 'The place was a shambles - it has been left to go to rack and ruin for months. I haven't paid any rent yet and Provence hasn't asked for any. 'A lot of people in my situation would be heart-broken by now. I do want to stay in the pub and work with Provence - I've invested a lot of money. For other tenants who are struggling, the more help Provence can give the better.' Kiely denied rumours that Provence planned to reduce pub-buying activity. But he added: 'We intend to focus more of our efforts upon other commercial developments, which we are heavily involved with and where our presence is far more appreciated.'