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Tenants' action group plots pubco rebellion
An action group of tenants and leaseholders is planning a mass "beercott" of pubcos Punch Taverns and Enterprise Inns in a protest against the tied business model.
The Pub Revolution group is proposing that landlords withhold rent from the companies and break the terms of their leases in what it calls "a bid to ensure the survival of pubs across the country and to put an end to the pub companies". A spokesperson for the group told Leisure Opportunities that the campaign had attracted "hundreds" of publicans in support of the proposals and that it would not be deterred by the prospect of legal action as the pubcos would not be able to prosecute all of those involved with the "beercott".
The spokesperson said: "It is a blatant abuse of power by the pub companies and they are robbing tenants blind. They are forcing people out of business - the companies are failing us all. "We want to push Punch and Enterprise into administration. It would be a positive situation - administrators would make the freehold available to buy at the real price instead of the inflated value."
The Campaign for Real Ale (CAMRA) has already called on the Office of Fair Trading to investigate the tied business model, which has been accused of forcing up drinks prices and causing landlords to go out of business. The Pub Revolution group now hopes that by withholding rent from both Punch Taverns and Enterprise Inns, which the spokesperson said is due to take effect "very soon", it will make it increasingly difficult for the companies to survive.
However, a spokesperson for Punch Taverns said the company was committed to working with its licensees to ensure that struggling pubs can meet the challenges posed by the current economic climate. The company also stressed that it is committed to improving the tied business model to benefit "all interests in the sector". The spokesperson for Punch Taverns said: "So far this year, we have supported more than 3,000 licensees and we would encourage any licensees who are concerned about their business to talk to their business relationship manager.
"We are a publicly quoted company and cannot accept any actions taken in breach of commercial contracts. However, we remain committed to building open and transparent relationships with our licencees." A spokesperson for Enterprise Inns added: "The vast majority of our hard-working licensees continues to trade well and will share our disappointment that a small group of anonymous individuals have once again, distracted attention from the significant efforts being made by the industry to deal with the current economic challenges, by threatening actions that may constitute a deliberate breach of contract."
"We have well established and respected procedures for engaging constructively with and helping tenants who are experiencing difficulties. The very many licensees who have chosen to work with us to protect and grow their trade will testify to the effectiveness of working together as a team."
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