RENTWATCH

A Punch licensee has run up £10,000 worth of debt inside three months of taking on a run-down pub in Pool, Cornwall.

Dianne Thompson paid £56,000 for the lease at the Bassett Arms in May, plus £4,000 fixtures and fittings. She was told the pub was taking £208,000 a year and the rent was set at £722 a week.

However, Thompson and her husband, son and daughter had to close the pub for three weeks to tidy up the place. "We invested a further £20,000 in decorating and cleaning," she said. "The place was a mess. It had a drugs problem before and was a real state. We even found a pistol in the back garden."

The pub's seven letting rooms housed council tenants who left the place in a state of "disrepair". Rent was paid for those three weeks but they later received £1,600 compensation from Punch in return. Trade dropped right away as the previous clientele were told they were not welcome. In its first week of opening, the pub took just £189.25. Since then takings have increased with the worst week being £384 and the best £1,165. The average is £700 a week.

A month ago, the rent was reduced to £536 but the Thompsons have still struggled to pay. They have now been threatened with court action by Punch to recoup the £10,000 and evict them from the premises. "We have never been able to pay the rent," said Thompson. "We had to kick the old clientele out and the letting rooms and kitchen need work before we can use them."

A Punch spokesman said that the pubco had spent £35,000 on improvements six months prior to the Bassetts' arrival. A further rent reduction has now been put forward.

l Is your pubco increasing your rent? Is it decreasing your rent? If you have a rent-based story call The PMA Team on 01293 610344.