Punch urges new hosts to sign open book deal

Punch Taverns is insisting all new lessees without an accountant, including those buying leases on assignment, sign up for controversial open-book accounts.

Punch business relationship managers will receive regular reports on the financial health of the pubs.

Critics say the system, which will involve hosts signing up with trade accountant Milestone​, amounts to Big Brother tactics by Punch and other pubcos.

But more and more trade experts now believe the system provides tenants with invaluable support in their early vulnerable months in the trade. cashflow problems can be the cause of a licensee's downfall​Deborah Kemp Punch operations director south

Punch operations director south Deborah Kemp said: "Any new Punch retailers will have to show they have a qualified and competent accountant or else we will insist they use Milestone for 12 months. ​

"The move is a recognition of how important proper accounts are in the pub industry where cash is king - in many instances cashflow problems can be the cause of a licensee's downfall." ​

Kemp said Punch had tried to avoid being "dictatorial" by imposing open-book accounting on every new arrival.

"This is a kind of safety net for licensees most at risk."​

The new system went live at the start of this month so Punch has no figures on the percentage of new hosts signing up.

Hosts who end up with Milestone doing their accounts will pay a £2,300 annual fee.

For more on this story see this week's Morning Advertiser or to have your say Email us your comments by clicking this link​ - please include the title of the story you are responding to.