Tenant backs Provence over high rents claims
by The PMA Team
Provence multiple tenant Nick Hogan has voiced strong support for the company in the wake of claims that pubs are closing because of its high rents.
The Morning Advertiser reported last week that some Provence tenants were struggling with their high rents in country pubs.
But Hogan has taken leases on five Provence pubs and has seen turnover increase from £750,000 to £5.2m per annum. Hogan said: 'Provence has allowed me to develop my business and I'm actually pestering them for more sites. Our rents are high but we're free to go to the open market to get substantial discounts.
'People have to invest time and money in Provence's sites. I've tried to cherry-pick sites with them, but I think they're a brilliant company to work with. Provence has allowed me to grow my business.'
Provence had even given him an eight-week rent-free period during a slight cashflow difficulty at one pub, the Swan at Bolton, he said. Hogan added: 'We would like four more sites in the New Year.'
But former Provence tenant Chris Reevell has claimed Provence rents proved too high at two pubs he tried to run in north Wales. He was unable to afford £900 a week at the Crooked Horn, at Brynfordd, Clwyd. He claims to have debts of around £60,000 after taking on a second Provence pub, the Blossoms in Bagillt, Clwyd, where the rent was £980 a week.
Reevell invested £70,000 at the Crooked Horn after paying a £5,000 premium to enter the pub. 'When we signed the lease on the Crooked Horn it looked all right but it needed lots of work, including re-wiring and repairs to the flat roof.' He claimed the rent was not affordable with weekly takings averaging under £4,000.
His electricity bill alone each week was £270. Reevell found the same at the Blossoms. 'The pub needed to take £4,500 a week to [afford the rent] but it was making £2,500,' he said.
When relations with Provence hit rock bottom Reevell said he stripped the Crooked Horn of all its fixtures and fittings as he left and ensured the premises licence was revoked.
Provence is pursuing legal action against Reevell while he is preparing a counter-claim.