Enterprise lessee wins arbitration

An award-winning lessee has won in arbitration after her pubco tried to double her rent.

Enterprise Inns proposed increasing rent at the Seven Stars, in Holborn, London, from £39,500 to £79,975.

Lessee Jenny Silver - known as Roxy Beaujolais - was advised by consultant Ken Newton that a more realistic rent for the free-of-tie pub would be between £50,000 and £55,000.

Newton made an offer of £50,500, which was rejected by Enterprise - the pubco proposed £59,500.

After further negotiations failed, an arbitrator was appointed and settled on £52,500.

Newton argued that "Roxy" was the key to success at the "tiny" pub.

The Seven Stars has a trading space of less than 500sq ft and is located in an area where trade is traditionally quiet at weekends.

Silver and husband Nathan have spent about £100,000

on the interior since taking over the 400-year-old listed pub in 2001.

They increased the number of days it opens from five to seven, revamped its food offer and increased covers from four to 20. Since 2001, it has been named Pub of the Year by Time Out and London's Best Dining Pub by the Good Pub Guide.

Newton said: "The pub is doing well as a result of Roxy's efforts. There were only five years left on the lease and Enterprise wanted to double the rent, because it has apparently been under-trading all these years. That is unacceptable."

Roxy was "horrified" by the proposed rent hike. She said: "It would have been very difficult to trade with that rent. There would have been no profit."

Enterprise was ordered to pay costs of about £10,000, plus Newton's expenses of £2,000.

This is because Silver's final offer of £52,050 was nearer the arbitrator's ruling than Enterprise's final proposal of £55,000.