Enterprise lessee leaves after 17 years over rent

An Enterprise lessee is to leave his pub and home after 17 years blaming the "obscene" rent levels the company charges — but the pubco said it had been as flexible as possible.

Bob McGreevy has been licensee at the Butts Retreat in Coventry for almost two decades with his wife Carol — eight as a manager for Whitbread and nine as a lessee under Enterprise Inns.

But he has now surrendered the lease, claiming the rent charged and the high beer prices meant he could not compete with the four Wetherspoon outlets, which are within a 15 minute walk of his pub.

Enterprise had put McGreevy on a business recovery plan for the majority of the past two years — offering him a rent reduction and an extra beer discount — but that ended in October when the pub was due its rent review.

McGreevy now faces a settlement figure of around £12,000 for surrendering his lease and will only recoup the cost of his fixtures and fittings.

Trade dipped at the community pub from around £8,000 a week two years ago to around £5,000 a week following the closure of the Jaguar factory in Coventry and a nearby college closing down.

Enterprise had offered to reduce the rent from £42,000 a year to £37,000 and say they offered him a new lease with greater beer discounts to help combat the Wetherspoon effect, as well as some free training. McGreevy feels a fairer rent would have been around the £18,000 mark.

The couple had invested around £35,000 over the past three years, including £3,000 on a smoking shelter. Enterprise had paid for a refurbishment five years ago — although this had been reflected in the rent.

Competition​

"It is not unreasonable to expect competition when you are in business but it is totally unreasonable not to be able to compete," said McGreevy.

"You can look at supermarket pricing and the smoking ban but we are all competing in the same market place. How come the managed pubs are doing OK? The only difference is the rent I have to pay and the prices I have to pay for beer.

"I am walking away before I get into more debt. I love the trade and would like to go back in but I would never touch another Enterprise pub.

"If the mergers and monopolies commission thought they were doing the industry a favour they were wrong. The best thing they could do is increase the number of pubs breweries can own to around 3,000."

Flexibility​

An Enterprise spokesman said: "Over a sustained period, we have given this licensee extensive help and assistance to try and help him improve his business. Sadly, Mr McGreevy has decided that he no longer wishes to continue with his pub. We are in the process of agreeing the termination of the lease in the normal way.

"Tied pubs have been more successful in weathering the recession than free-of-tie pubs and we are receiving a record number of applications to take on pubs across the country. Sadly, there will always be individual cases where things do not work out."

Enterprise said it had been "flooded" with requests about taking on the pub.