Ei rent credits to stop at end of June

By Nikkie Thatcher

- Last updated on GMT

Business comment: Stonegate leased and tenanted MD Nick Light said he was proud of the financial support the company had provided (image: Getty/Scott O'Neill)
Business comment: Stonegate leased and tenanted MD Nick Light said he was proud of the financial support the company had provided (image: Getty/Scott O'Neill)

Related tags: Ei Group, Stonegate pub company, Tenanted + leased, Pubco + head office, Finance

Tied Ei Publican Partnerships licensees on substantive agreements in England will receive rent credits until 20 June but The Morning Advertiser understands the credits will stop after this date.

Licensees will receive rent and trade credits throughout April, May and June, of up to 90% before outdoor areas opening on 12 April.

After this, licensees with trade credits equivalent to 100% of the value of their rent will be provided until 16 May – the day before pubs are set to reopen inside.

Stonegate, parent company of Ei Publican Partnerships, said this is to help enable pubs to restock their cellars and follows its approach after the first lockdown in July 2020. Trade credits will then continue at 75% of the value of the rent until 20 June.

Financial support

The company also stated publicans will benefit from special promotional pricing on wines, spirits and minerals.

For Welsh operators, existing rent credits of up to 90% are currently ongoing pending confirmation from the Welsh Government on the reopening timetable.

Stonegate leased and tenanted managing director Nick Light said: “We are proud of the continuous financial support we have provided to our publicans throughout the pandemic and believe these substantial trade credits.

“We are also providing a raft of reopening advice, business-building tips and undertaking investment in outdoor areas so our publicans can open safely and attract old and new customers alike who we know are keen to return to the great British pub.”

Company report

Meanwhile earlier this month (March), Stonegate revealed the enforced closure of its sites has yielded a £746m loss​ and forced it to tap investors and debt markets for £1.4bn funding.

According to reports by The Financial Times (FT)​​, while the operator of more than 4,700 pubs under brands such as Slug and Lettuce and Craft Union expects normal trading to return from July, it warned a winter lockdown would force it to consider raising more debt or selling assets. 

The group recorded a £746m pre-tax loss largely due to estate depreciation and costs stemming from its £1.27bn acquisition of Ei Group in March 2020 – which made Stonegate the largest pub operator in the UK.

Related topics: Ei Group

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