Publicans threaten beer tie rent strike
Angry publicans are planning a rent strike against landlords Punch Taverns and Enterprise Inns after last week's Office of Fair Trading ruling that the beer tie between tenants and pub companies was not anti-competitive.
Anger: Publicans are not happy with the OFT ruling
An organisation calling itself the Pub Revolutionary Group and claiming to represent 2,000 publicans said they would not pay for beer delivered or their rent in a move they said 'will kick the pub companies as they have been kicking us'.
The group, run by a Punch Taverns' licensee from Southampton, said members would start their rent strike within the next few weeks and that it would cost the companies £50m in the first three months.
However, the companies have dismissed any threat of action as 'irrelevant' and say any licensee who refuses to pay rent will be in breach of contract and could end up losing their pub.
One pub company insider said: 'Unfortunately, there are some people around who try to entice others into this type of behaviour.
'If people are having trouble paying their rent, they will be dealt with sympathetically.
'But after a certain point we're going to be unsympathetic and a few will probably get thrown out of their pubs.'
Legal proceedings can be brought against tenants who do not keep the terms of their lease agreements.
The group's founder said they were relying on 'safety in numbers' and that the plan was to buy their beer from other sources. In the event of legal action, money owed would be paid on the day before any court case.
Nick Bish of the Association of Licensed Multiple Retailers said he 'deplored the breaking of contracts in this way'.
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