According to the industry regulator, Stonegate may have failed to give current and prospective pub tenants clear and accurate information, as required under the Pubs Code, between 15 July 2021 and 14 July 2026.
Join our new WhatsApp channel: The Morning Round-Up
Get the biggest pub trade stories straight to your phone. Listen to our one-minute daily news briefing and receive breaking news, exclusives and sector updates throughout the day. Remember to turn notifications on in the top right corner! Join the channel here.
The investigation follows a period of close engagement with the PCA, which will now examine Stonegate’s conduct during the five year period.
It will look into whether Stonegate:
- Gave prospective tenants accurate information about the condition of pubs before they signed agreements
- Properly set out planned repair, maintenance and improvement works
- Provided realistic financial forecasts and rent information
- Responded appropriately to tenants’ requests for information during rent negotiations
- Treated tenants fairly through its business development managers
The regulator will also question whether the company accurately reported its compliance with the Pubs Code.
Important rights
However, the industry watchdog stressed it had not yet reached any conclusions on whether or not Stonegate had broken the Pubs Code.
PCA Fiona Dickie said: “The Pubs Code provides important rights entitling tied pub tenants, and those in negotiations to take on a tied pub, to transparent information including with regard to the premises and the rent.
“This investigation will help us establish if Stonegate has met their duties under the Pubs Code.
“Upholding the core principles of the Pubs Code, ensuring fair and lawful dealing and that tied tenants are no worse off than free of tie operators, is our priority.”
The inquiry follows years of poor feedback from Stonegate, which is the UK’s largest pub operator with more than 4,500 sites nationwide, tied tenants.
It has been ranked lowest in the Pubs Code Adjudicator’s annual Tied Tenant Survey for the past three years, with just 39% of tenants satisfied with their relationship with Stonegate in the latest survey.
Further action
The survey found tenants continued to raise concerns about repairs, communication and dealings with business development managers
As part of its investigation, the PCA has called on current and former Stonegate tenants to come forward with evidence. The deadline for submissions is 5pm on Wednesday 12 August.
Evidence can be submitted by emailing Investigations1@pubscodeadjudicator.gov.uk. More information can be found on the PCA website.
Dickie added: “It is important that previous and existing tenants, and other interested parties, provide us with information to support this investigation.
“This will help us to determine whether the Pubs Code has been broken and, if so, the impact on tenants and what further action should be taken.”
