Open Letter to Pub Operating Businesses
The Licensees Association calls on pub operating businesses to stand behind and support their leaseholders and tenants.
The letter is below and you can download it HERE.
In light of the ongoing crisis caused by Covid-19 and the associated consequences for tenants and leaseholders we write with the following suggestions which we hope you can adopt to help create some certainty for your business partners.
As many of you will know we have been working around the clock to place your tenants onto insurance policies but many will not have business interruption through Covid-19 in their policies and access to cover is proving harder and harder to get.
In light of this we make the following suggestions which we believe are proportionate and will provide some relief and certainty:
• If a site shuts it should be commercial rent free for the period of closure.
• Following re-opening it should have a negotiated rent for an agreed period to allow for a re-build of confidence.
• If evidence of a severe downturn in business can be shown year on year, increased discounts should be made available to ease pressure.
• If for any reason whatsoever, you the POB or your nominated supplier cannot deliver tied goods then there should be an accepted automatic release from the tie, without penalty or claw back, for like for like quantities, until you can fulfil your delivery obligation.
• An agreed waiver on tight timescales within pubs code for serving of MRO etc to enable people to concentrate on other issues, staff cover etc.
• If leaseholder has to self-isolate cash assistance to hire a locum/cover. This is to ensure those who should be self isolating do so and are not so concerned about their finances that they work when shouldn’t with the obvious knock on effect this will have to spreading the virus.
• Credit terms for all tenants of 30 days on stock purchases.
We stand ready to help in any way we can. We are working around the clock already and will continue to do so to assist you and your tenants in any way we can. We urge that we can come to an agreed way forward for the benefit of all within the industry. Tenants need certainty and that is not provided with the “case by case basis” that seems many favour adopting. This creates uncertainty and unfairness at a time when clear and unequivocal guidance is required.
I hope you look on these measures as sensible and ones which will ensure we can have some certainty to move forward for the benefit of all within our wonderful industry.