Provence u-turn gives pub tenants rent-cut relief
Provence, the controversial firm that sells pub freeholds at auction with a lease back to itself, is offering tenants lower rents in return for a tie on draught beer.
The move is a complete U-turn for a company that has always insisted that it is a commercial property firm and not a pubco.
The rent is still extortionate but I have got some breathing spaceMartin Cooke, Nag's Head, Eastrea.
In the past few weeks tenants struggling to pay Provence's high rents have been offered new tied leases.
A new company, Countrywide Inns, set up to deal with tenants, has also been offering them a range of support services such as payroll, accountancy and stocktaking.
Martin Cooke, who runs the Nag's Head in Eastrea, Whittlesey, Cambridgeshire, has signed a new five-year lease which sees his rent drop from £1,095 a week to £760 a week.
The lease imposes a beer tie - suppliers are Coors and Carlsberg - but he obtains a £65-a-barrel discount.
Cooke said: "The rent is still extortionate but I have got some breathing space. At the end of the month there's not a great deal left for me. I've talked in the past about handing the keys back and walking away.
"But Provence seem to have totally changed tack although the beer tie means it can keep more of an eye on me - it's basically a pub company."
John Wade had been struggling with his £1,016-a-week rent at the Woolpack Inn in Walpole Cross Keys, Norfolk.
He has spent more than six months trying to persuade Provence a more realistic rent is around £500 per week.
Now he has signed a new five-year lease with a weekly rent of £500 and a beer tie. He said: "It's a complete turnaround - I'm well and truly happy."
