TV licensee brokers debt deal for pubco tenants
A major pubco has wiped out combined debts of over £250,000 for 90 licensees after TV star licensee Jay Smith brokered a deal.
The pubco, which wished to remain anonymous, agreed to write off debts of £256,000 with £320,000 rentalised interest free over the next five years after being approached by the star of UKTV Blighty's Save our Boozer series.
The initial group case included 98 licensees — eight of which were rejected. If tenants leave during the five years or fall into debt again, they are personally liable for the rentalised part of the debt.
"No-one forced these people in to a darkened room and made them sign the lease but there are cases where the rent doesn't reflect the current market, or trade has dipped through no fault of the licensee or where the support from the pubco has not been what it should have," said Smith, who first floated the idea in the Morning Advertiser (TV licensee aims to reduce pub tenants' debts).
As part of the deal, Smith was able to agree a re-alignment of rent at some pubs and scrap the RPI increase while the debt is being repaid at others.
Smith, who charges an upfront fee and takes 10% of the savings made, has dealt with another 128 cases so far on a smaller scale — wiping off £190,000 worth of debt and rentalising £430,000 over five years.
"The pubcos have not been acting illegally but they have been irresponsible and I think they realise they can now collect some of the debt or end up with nothing because the tenant will have to leave."
