London brewer and operator Fuller's has admitted it has a number of "toxic leases" with unsympathetic landlords.
In a letter to the Business Innovation Skills Committee, published as part of the evidence bundle yesterday, Fuller's said that free of tie leases were not always to the benefit of the tenant.
"Fuller's itself has a number of toxic leases which we entered into in better times with our eyes open, but now that times have changed these landlords (all of which are unconnected with our industry) are deaf to our pleas to reduce the rent," said Fuller's chairman Michael Turner.
"The result is that we have several sites in which we are losing money, and we would like to cease trading in, but we cannot. For the avoidance of doubt, none of these leases are tied.
"The issues between landlord and tenant are inevitable in any industry, but in our industry the problems are all being blamed on the tie, and that is not appropriate.
"The parties to the recent industry mediation saw an opportunity to reduce their rents, and understandably they have pursued that line relentlessly, and are continuing to do so, as this may be their only opportunity to avoid bankruptcy, but I would contend that it is not appropriate to consider the landlord tenant relationship in the pub industry in isolation from the landlord tenant relationship in other property transactions."
Turner said that the inquiry had bought about a speeding up of the process of eliminating imperfections in the pub rental system but warned that even legislation would not remove all imperfections.
"I would appeal to you now to let the industry get on with implementing the very significant changes to the new code and with dealing with the major threats facing it rather than spending more time on the tie which has been the backbone of our industry for several centuries, and has served companies, tenants and the public so well over that time."