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СпутникиРНSpaceXРоскосмосNASAThe operator said it is 'fully committed' to complying with the investigation
One of the largest pub and bar operators in the country is under investigation after a regulator said it had ‘reasonable grounds to suspect’ it had ‘failed' to treat its tenants fairly.
The Pubs Code was launched by the Government ten years ago to regulate the relationship between companies who own more than 500 tied pubs in England and Wales and their publicans. It regulates six major pub companies in the UK.
The regulation means that publicans are given the relevant information required to make informed decisions about taking on a pub, and that all discussions regarding rent proposals, assessments, repairs and matters relating to business plans are all documented appropriately in writing.
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The code is overseen by Pubs Code Adjudicator (PCA), who have announced this week that they have ‘reasonable grounds to suspect that Stonegate has failed to comply’ to the commitment of the code.
The PCA said it is now looking into Stonegate's obligations to provide information to tenants and prospective tenants during the period of July 15, 2021 and July 14, 2026.
The regulator said its investigation will look into Stonegate’s duties to provide a ‘full and clear description of the premises, a list of initial works of maintenance, repair or improvement which must be done, and a rent proposal including a reasonable and justified profit projection’.
It said it was also looking to determine whether the operator upheld its duty to ensure prospective tenants had a ‘sustainable business plan’ in place. Stonegate said it has acknowledged the announcement of the investigation and remains ‘fully committed’ to complying with the Pubs Code.
A spokesperson for Stonegate said they understand that the investigation currently refers to two cases, but no details regarding the pubs or venues involved have been named by either the PCA or by Stonegate at this stage.
Stonegate is considered to be the largest pub company in the UK. Formed 16 years ago, it now has over 4,500 sites to its name. Across Manchester, it is the owner of venues like Slug and Lettuce, which has sites in Spinningfields and Albert Square, as well as Be At One and Walkabout.
It is also the operator behind both Ark and Popworld on Deansgate, which will close permanently this weekend and will mean that Deansgate Locks will be completely empty as a result with all venues now shut.
It is also behind venues like Via, on Canal Street, and Yates on Portland Street. In Greater Manchester, it is the operator of pubs including the Temple Inn, in Sale, Middleton's Edgar Wood, Denton's Old Peg, Salford's White Lion, and the Royal Oak in Stockport. There has been no suggestion that any of the venues in Greater Manchester currently form part of the investigation.
If found to be in breach of the code, Stonegate could face a fine of up to one per cent of its total UK turnover, which stood at an estimated £1.6 billion in its last financial year.
In a statement, a spokesperson for Stonegate said: "We acknowledge the announcement by the Pubs Code Adjudicator (PCA) regarding the launch of a statutory investigation. Stonegate is fully committed to complying with the code and ensuring all Publicans are treated fairly.
“Stonegate has communicated at length with the PCA over the two specific cases that form the basis of this investigation, and we will cooperate fully throughout. We remain committed to working fairly and transparently with our publicans and to building strong, successful partnerships.”
The PCA said it is looking to speak to any current and former tenants of Stonegate who may be affected by the issues within the scope of the investigation. Evidence can be shared to Investigations1@pubscodeadjudicator.gov.uk or by post, with details here.
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