Greene King Pubs Struggle

FOUR GREENE KING TIED PUBS IN DERBYSHIRE AND NOTTINGHAMSHIRE IN DIFFICULTY
DUE TO UNAFFORDABLE RENTS WITH ACTION ON ONE PENDING IN DERBY COUNTY COURT

For tied pubs in Derbyshire and Nottinghamshire statutory regulation for
the pub industry on unaffordable rents cannot come soon enough says GMB

Redress is being sought in Derby County Court over alleged breaches of the
Insolvency Act by pubco Greene King.

This action has come to light as GMB, the union for tied pub tenants,
probes the activities of Greene King in the Derbyshire and Nottinghamshire
area.

GMB plans to write again to Greene King Managing Director  Simon Longbottom
drawing his attention to problems for Greene King tied tenants at The
Grouse Inn, Darley Dale, the Railway in Matlock, The Gardiners at Cossall
and the White Hart in Lenton, Nottingham.

The Government are undergoing a consultation process regarding the planned
implementation of statutory regulation for the Pub industry. This
regulation may include a “free of tie option” to deal with unaffordable
rents. GMB has been instrumental in forcing Government to take this action.

Dave Mountford, GMB Branch Secretary, said “Four  Greene King pubs in the
area are in trouble and the tenants cannot make a living. GMB first wrote
to Mr Longbottom in January and 4 months later nothing has been done.

In February Simon Longbottom stated that he felt self-regulation had been
given “not long enough to succeed”

http://www.morningadvertiser.co.uk/General-News/Greene-King-will-embrace-pubco-tenant-regulation-consultation

Thankfully the Government has disagreed with Mr Longbottom.

The case of Tom Meehan from The Grouse Inn, Darley Dale will be the subject
of action at Derby County Court.

Tom told me that he was coerced by Greene King to take on £11,759 debt
despite the fact that the debt in question was written off as part of
insolvency that happened two years before.

This £11,759 owing to Greene King arose at the Railway in Matlock where Tom
and his father Tom Senior faced bankruptcy with debt to the amounting to
£75,000 after 5 years of trading.

Before the bankruptcy proceedings Tom was asked by Greene King to take on
another pub close by, The Grouse at Darley Dale and seeing little option
from 2011 he ran the Grouse on a Tenancy at Will.

Six months after he left the Railway both Tom and his father were declared
bankrupt at Derby and Nottingham Court. Part of the bankruptcy figure was
the £11,759 owed to Greene King which was written off.

Following the insolvency Tom met with Greene King who told him his license
would have to be transferred to his wife as he was unable to continue to
trade being insolvent.

Tom was told that this transfer would only be sanctioned by Greene King
only if his wife agreed to repay the £11,759 that was owing from the
Railway, despite this amount already being written off as part of both the
Meehan’s bankruptcy arrangement. Tom was given 30 minutes to make up his
mind otherwise face eviction from the pub along with his wife. This is
coercion.

The £11,759 was paid off over nearly a year by Mrs Meehan at £300 per week.

The Meehan’s who have struggled to maintain any sort of living from the
business, despite it being a busy and vibrant pub have notified Greene King
as to their intention to leave when their lease expires in October 2013.

This however is not the only case of failed business model in this area of
Derbyshire.

A second case is Paul Attewel who took on the Railway Inn at Matlock
following the departure of the Meehans in 2010 – last weekend Paul entered
into receivership as a business closing The Railway.

Two other Greene King pubs, The Gardners at Cossall in Nottingham and the
White Hart in Lenton, Nottingham are also in trouble.

For tied pubs in Derbyshire and Nottinghamshire planned implementation of
statutory regulation for the pub industry to deal with unaffordable rents
cannot come soon enough”.

End

Contact Dave Mountford 07794 021 212 or 01629 258 083 or  GMB press office
07921 289880

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One comment on “Greene King Pubs Struggle
  1. J Mark Dodds says:

    Would you mind publishing contact details for Greene King Tenanted division please? I’d love to sign up for one of their pubs and set myself up as a ‘Local Hero’. Oh I did a search and found it. Sounds GREAT!

    HAVE A LOOK AT THE SUPPORT WE PROVIDE OUR PUBS
    Once you are in your pub Greene King Pub Partners have an unrivalled support network. We have our Business Devlopment Managers, support from head office and a whole range of online support.

    THE SUPPORT WE GIVE OUR LICENSEES
    Greene King Pub Partners recognises the need for support in today’s increasingly competitive market without taking away the freedom our Licensees enjoy. Our aim is to provide support and leadership combined with autonomy and scope for you to operate a successful business. Our unrivalled flexible support and training programme is designed to best suit your needs.

    What they offer is, genuinely amazing! Have a look here: http://www.greenekingpubs.co.uk/licensee-support-people.php

    I think YOU might want to change everything and join the Greene King Team!

    Eh?

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