Enterprise pub lands 43% cut in rent

By Lesley Foottit

- Last updated on GMT

Related tags: Award, Arbitration, Enterprise inns

An Enterprise Inns licensee has secured a 43% cut in rent after taking the pubco to arbitration — the largest reduction achieved in recent years....

An Enterprise Inns licensee has secured a 43% cut in rent after taking the pubco to arbitration — the largest reduction achieved in recent years.

The pub's rent was £78,000 and has been reduced to £45,500 — a drop of £32,500. Enterprise had offered to drop the rent to £70,000 but the offer was deemed unreasonable by the arbitrator.

The tenants, who wish to remain anonymous, were represented by David Morgan of Cookseys DMP.

The costs have been awarded against Enterprise Inns.

"The 43% reduction is probably the largest percentage reduction in recent memory and underscores the reality of the ongoing recession with a rent award that represented less than 9% of the arbitrator's adopted fair maintainable trade," said Morgan.

"The award will assist in the transparency that needs to be achieved in the rent review market to the benefit of all."

The licensee told the Publican's Morning Advertiser​: "I am very pleased with the result. I was lucky to be in a position to take them to task."

Enterprise Inns declined to comment.

Related topics: Legislation, Ei Group

Property of the week

The Hazeldene Hotel

- Tenancy

The Hazeldene Hotel is opposite the Famous Blacksmiths Shop in Gretna Green. With 11 letting rooms, it is in a prime location to offer fantastic...

Follow us

Pub Trade Guides

View more