Enterprise lessee on hunger strike

A multiple Enterprise lessee has gone on hunger strike in protest against "exorbitant" rents but the pubco says it has done everything it can to help.

A multiple Enterprise lessee has gone on hunger strike in protest against "exorbitant" rents and "steep" beer prices.

Colm Powell, licensee of the Punch & Judy, Ivy House and Station House in Tonbridge, Kent, has been laying in a coffin since 24 September and will end the hunger strike on 8 October when he is evicted from the pubs.

But Enterprise Inns said it had offered him permanent rent reductions, discounts and deferred payment terms but as Powell had breached the terms of his agreements it had no choice but to take the pubs back.

"The pub trade has changed for the worse since companies such as yours have got involved in it," said Powell in an open letter to Enterprise chief executive Ted Tuppen.

"There's the exorbitant rent and the steep mark up on tied beers, which take at least 55% of my potential profit out of the business. There's the way in which you pass on all price rises to me, instantly squeezing my margin and leaving me to deal with the customers and the market forces. And then there's the so-called support you give me."

He added: "You are killing the pub trade."

Support

An Enterprise statement said: "Enterprise Inns regards its dealings with licensees as confidential and therefore, as a matter of policy, does not normally comment.

"However, in these somewhat exceptional circumstances, Enterprise Inns has sought and obtained judgment for possession of the three pubs that Mr Powell leased from the company. Mr Powell has been unable to meet the obligations contained in the lease agreements.

"We understand a separate unsuccessful business venture unrelated to Enterprise Inns may have contributed to Mr Powell's difficulties.

"That said, we have sought to help Mr Powell with deferred payment terms, special discounts, a late licence application and a permanent rent reduction.

"Despite this help, Mr Powell continued to breach the terms of his agreements, eventually leaving us with no alternative but to seek possession of the pubs involved.

"We continue to offer assistance to retailers who are experiencing difficulties in challenging trading conditions.

"However, we have a reasonable expectation that our retailers will make every effort to comply with their agreements and must act when they do not, as has been the case with Mr Powell."