Ex-Provence tenants pursued over 'debts'

Provence, the company that sells pub freeholds at auction with a lease back to itself, is pursuing a a number of former tenants over alleged debt.

James Lees-Weir left his pub, the Crown at Maltby-le-Marsh, Lincolnshire, last October, after deciding that the rent was unsustainable.

He had paid a reduced rent of £250 from January to May and £500 to October - with a rise to £930 due by the end of the year. Takings at the pub were as little as £1,000 a week over his eight-month spell.

Lees-Weir, who paid a £7,000 premium for a five-year lease, clams he had contact with Provence just twice, including once when he drove to its Bolton base to demand talks.

Now eight months after

leaving, he has received a letter from a debt collection agency demanding £16,670.16 and threatening legal action if it is not paid within seven days. "They are ripping me off," he said. "I already paid them £7,000 for a lease that was as much use as a chocolate fireguard."

Lees-Weir quit his pub just

a month before Provence boss Paul Kiely promised any unhappy tenants they could forfeit their lease within 28 days.

Lees-Weir said: "As far as I am concerned they let us walk away. I gave a month's notice before I left and they did not ask me for money. There is no breakdown of costs and I have no idea what it is for. I am now talking to my solicitor. This would make me bankrupt."

Angela Peat, who ran two Provence pubs in Lincolnshire - the Cross Roads at East Barkwith and Red Lion at Baumber - for 18 months said she had faced a similar situation. "They chased us with the same threats," she said. "They wanted £8,500 for the Red Lion and £12,000 for the Cross Roads. My solicitor dealt with them and we haven't heard anything from them for three months."

Another former Provence licensee, who asked to remain nameless, said she received a demand this week for £10,000 in respect of her six months at a Provence pub.

Provence failed to comment before the MA went to press.

Pitfalls of signing that lease

Federation of Licensed Victuallers Associations chief executive Tony Payne said it was vital to find out what the debt was for and if there would be more to come in the future. "Unfortunately, if there is no break clause in the contract then he has signed a five-year lease and they could chase more money as long as nobody is in the pub. It is a hard world and people must realise before signing a contract that you can't just walk away."

Payne added that even though some pubcos have break clauses, tenants may still have to serve a notice period and cover advertising costs until a replacement is found. "He may be better declaring himself bankrupt. You can still run a pub as long as you are not the premises licence holder."

Industry consultant Phil Dixon added: "Sadly, it shows that you shouldn't sign a five-year lease unless you are convinced that the business is viable. They are entitled to chase him. He needs to establish whether they misled him on the trading figures when he entered the agreement."