Marston’s reveals 50% rent support for Welsh tied tenants

By Nikkie Thatcher

- Last updated on GMT

Pubco announcement: Marston's is providing its Welsh tied tenants with 50% rent concessions while restrictions are in place
Pubco announcement: Marston's is providing its Welsh tied tenants with 50% rent concessions while restrictions are in place

Related tags: Marston's pub company, Pubco + head office, Tenanted + leased, Finance, Legislation

Large pub company Marston’s is reducing the rent payable to 50% of the headline rent, starting from 26 December for its tied tenants in Wales.

The reduced rent will remain in place until restrictions are lifted and the company would then look to returning to full rent.

The Morning Advertiser ​understands Marston’s operations director of wet-led pubs and property Ed Hancock wrote to tenants and said he was aware the most recent restrictions would significantly limit sales and at the same time, licensees would have costs within their businesses that they need to meet.

In Wales, rules from Boxing Day for pubs will include the rule of six and face masks. The Welsh Government has announced the rules are a revised version of alert level two, in a bid to tackle the spread of the Omicron variant.

Pubco support

The measures mean a requirement of 2-metre social distancing where reasonable as well as licensed premises being required to do table service and collecting customer contact details.

Industry adviser Phil Dixon said: “Well done also to Marston’s. An excellent and appropriated level of support.”

Fellow pubco Greene King has also revealed rent concessions for its tied tenants in Wales and Scotland.

For its two tied tenanted pubs in Wales and more than 100 in Scotland, Greene King Pub Partners managing director Wayne Shurvinton said the company had reviewed the situation on rents and it is also intending to postpone any Covid-related debt repayment plans that may currently be in place.

Hopeful for the future

Furthermore, the concession will remain in place for the foreseeable future, whether a pub is open or closed.

Shurvinton said: “This isn’t the Christmas we hoped for a few weeks ago and it’s particularly cruel that Omicron has hit the UK at such a critical trading period.

“However, I do hope the support from Government as well as our own support will put you in the strongest position possible to bounce back next year, once restrictions are lifted."

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