Licensees left out of pocket
Scores of would-be licensees who paid out for the promise of a pub placement have been told they are likely to find themselves thousands of pounds out of pocket. An agent acting for the liquidators of Greyfriars Taverns Ltd, which was forced into liquidation on December 15 last year, has revealed exclusively to The Publican that people who paid money to the company are unlikely to be able to get any of it refunded as the company is "hopelessly insolvent".
The Barnsley-based company took money from potential licensees but failed to place many of them in a pub.
Those who were given a placement found themselves on a tenancy at will with no job security, or placed in disreputable boozers.
Last year The Publican exclusively revealed that potential recruits to the industry responding to adverts in the national press were being offered training and the promise of a pub placement in return for a hefty fee - often to be met with disappointment.
Simon Robinson, a chef from York, paid £5,000 to Greyfriars Taverns in November last year.
He said that the company failed to offer him any suitable pubs and that he was considering taking legal action.
"I knew fairly soon after I paid the money it wasn't what it was meant to be," he said. "It has turned me off the trade. If I had got our money back I would have continued to try and enter the trade."
Michelle Oldfield from York paid £5,000 to Greyfriars Taverns in August 2003 and was placed in a pub in Huddersfield, but found it was riddled with mice and was forced to leave.
She said: "I feel angry but it seems there is nothing we can do about this now."
Paul Ogram, a train driver from Great Wilbraham, South Cambridgeshire, was dealing with Greyfriars Taverns on behalf of his sister and brother-in-law who paid them £4,000.
He lodged a complaint with local trading standards after Greyfriars failed to offer them a pub within their agreed catchment area.
He said: "I think it is appalling this company can take money with broken promises. The law should be tightened up."
Tony Payne, chief executive of the Federation of Licensed Victuallers' Associations, said: "Our concern is that these are prospective people coming into the trade who are being lost. I would advise potential licensees to go direct to a pubco."
Greyfriars Taverns parent company Barber Lettings was placed into administration on February 17, 2005 after Customs & Excise found it had failed to register for VAT. Barber Lettings appeared to be turning over £18m and is believed to owe in excess of £4m.
Contact liquidators Kingston Smith & Partners LLP, 105 St Peter St, St Albans, Herts, AL1 3EJ if you think you are owed money by Greyfriars Taverns.
The Publican says:
Never pay money upfront to any company that offers a pub placement and training for an upfront fee.
If you want to get into the pub trade or are considering taking on your own pub, search thePublican.com for advice. You can also get information from The Publican's Run you own Pub guide which gives advice on how to get into the pub trade - click here to find out more.
If you are a licensee or potential licensee and you have concerns about a similar company please contact michellep@thepublican.com or call 020 8565 3053.
