Host: 'Punch reneging on deal cost us thousands'
A Punch lessee couple have criticised the pubco for pulling out of a deal to sell their pub's freehold to them the day before completion, leaving them with bills of over £8,000.
Chris and Marianne Pearson have been lessees at the Olde Royal Oak, Bitteswell, Leicestershire, since August 2006 and have seen 20% growth in the business since their arrival.
The couple decided to put in an offer for the pub in February 2009, at the time when their lease was up for renewal. They decided not to renew the lease since they wanted to buy the pub instead, and after lengthy negotiations both parties agreed on a figure of £620,000. An independent valuation listed it a £575,000.
Pearson said his solicitors had already received the relevant documentation when the deal was pulled on 29 September, one day before the completion deadline.
He added: "I realise that (for Punch Taverns), selling one of their 8,000 odd pubs they cannot be too personal, however they must realise that they are messing with people's lives."
Pearson claims to have spent around £8,000 in processing the deal, and although Punch have refunded £3,500, Pearson labelled this amount "a joke".
The Pearsons have now handed in their three months notice, and plan to vacate the premises by January 2010, and search for other freehold pubs in the area. Chris said: "I have never felt so emotionally gutted and disappointed."
Punch's reponse
A Punch spokeswoman said the firm understood the Pearson's disappointment, adding that it "genuinely regrets" that the situation arose. The company said it had tried to "manage expectations throughout the process" and always made clear that board approval was required.
"Mr and Mrs Pearson's offer was agreed in principle subject to board approval which was unfortunately not possible earlier due to a delay in the provision of proof of funding.
"As a PLC we have a duty to our shareholders to dispose of assets at the value that meets their expectations.
"We have refunded £3,500 towards the costs Mr & Mrs Pearson have incurred in this process and are committed to working with them to discuss more flexibility in the terms of their lease."
