Greene King Pub Partners said it would provide a 90% discount for pubs closed under Government measures, ahead of speculated closures in areas with high infection rates next week.
The pub company announced it would look to shutter 79 sites and cut 800 jobs after the impact of the pandemic on trade.
These new concessions bring the pubco’s estimated financial support for its 975 tied tenants to more than £25m.
Greene King Pub Partners will backdate this support to 27 September and deliver concessions in a tiered approach:
• From 27 September to 24 October tied partners will receive a rent credit of 50%
• From 25 October to 21 November tied partners will receive a rent credit of 45%
• From 22 November to 26 December tied partners will receive a rent credit of 40%
Should closures last more than four weeks, the pub company will review what support may be needed and balance it against any potential Government support measures.
Tenants in Scotland will receive a 90% rent discount for the 16-day closure period, which started today (Friday 9 October) in the central belt. This decision applies to all tied tenants in Scotland, as they also face stricter trading conditions including a ban on selling alcohol indoors.
The company said it would review whether additional support was required into 2021.
It has said its existing discount on barrels will now run until 27 March 2021, with tied tenants receiving a trade credit of £35 per barrel.
Extremely worrying time
Greene King Pub Partners managing director Wayne Shurvinton said: “We are doing all we can to support our leased and tenanted partners at this extremely worrying time for them. Even pubs in areas with lesser restrictions are seeing their trade greatly impacted by the 10pm curfew and the worry is that this will only worsen throughout the winter.
“The new measures announced in Scotland, which effectively close down pubs, is devastating for us and our tenants. Those in England now also have the prospect of further shutdowns in the weeks ahead.
“This additional rent support for our tenants shows our commitment to supporting UK pubs as we all try to weather this storm together. We understand that firm and decisive action is needed to tackle the threat of Covid-19, however to impose additional restrictions on an entire industry without adequate financial support from the government puts hundreds of businesses in a precarious position and leaves thousands of livelihoods at risk.”
Star Pubs & Bars revealed extended rent concessions for its leased and tenanted pubs throughout November at a cost to the company of £2.8m.