Enterprise tenant reaches new lease agreement following potential 42% rent hike

A Derbyshire tenant has reached agreement with Enterprise Inns on new lease terms, after the pub company originally insisted she pay a rent increase of 42% to stay at the pub.

Claire Muldoon, who runs the Pattenmakers Arms in Duffield, was told by Enterprise that she could only remain at the pub after her lease expires in April if she agreed to a rent hike from £16,470 to £23,450 and put forward a new business plan.

Enterprise said she had signed a statutory declaration when she took on the pub in 2009, stating that she had no security of tenure – meaning she had no legal right to stay at the pub after the lease expired.

However, after the GMB union raised her case with Business Secretary Vince Cable, and industry consultant Phil Dixon intervened in negotiations, the pub company agreed to let Muldoon stay on at the pub on her current rent of £16,470.

'Relief'

“It’s such a relief – I’m extremely grateful,” Muldoon told the PMA. “The stress is gone and I feel like I’m 10 years younger.”

She added: “It’s never been about legal action, it’s just been about Enterprise allowing me to stay on a decent rent where I can actually pay my bills and staff and pay myself.

“I would encourage every tenant to negotiate and not accept the first offer put on the table because often it’s not fair.”

Enterprise

An Enterprise Inns spokesperson said: “We are pleased to have come to an agreement in principal with Mrs Muldoon, and look forward to her continued stewardship at The Pattenmakers. The circumstances of this case have been drawn out and complicated due to the intervention of certain third parties and the months of misrepresentation and misinformation that followed.

“Our express wish has always been for The Pattenmakers to remain at the heart of its local community, and with Mrs Muldoon’s acceptance of terms for a new tenancy agreement, we are confident that this will be assured.”

The company added that the original offer compensated for higher rent with higher discounts.

'Hard work'

Dave Mountford, GMB representative for tied pub tenants, said “It has been incredibly hard work with a fair amount of unpleasantness but this deal secures the future of the Pattenmakers Arms.

"She has taken a lot of stick but Claire has stuck to her guns and has now got a new deal that is better than her existing arrangement.

"This is an important result because it is a high-profile case but is by no means unique. The majority of publicans don’t know what they can achieve by fighting back because so many are unaware of their rights."