Punch tenants say pubco 'must change'
Punch licensee activists told the Publican’s Morning Advertiser they felt “no relief” as the company announced the completion of its restructuring last Wednesday (8 October), and said they are concerned tenants “will be squeezed even more”.
And, speaking to the PMA, central operations director Andy Slee gave no indication that the company will alter its model.
“In many ways the tenants won’t see any change. It will be business as usual,” he said.
“We’ve invested £40m in the infrastructure [of pubs] this year. We’ll be doing the same next. Our trading performance has improved over the past couple of years and that only happens when our pubs do better, so we share in their success and likewise.”
He added: “I think it’s recognised that Punch have been one of the leading lights in changing the relationship with landlords and tenants in recent years and the relationship we have with our tenants is very different to five or six years ago.
“But we’re not complacent on that at all. We’re always striving to improve the way that we do things.”
'They need to do things differently'
Dave Smith of the White Lion in Colsterworth, Lincolnshire, said: “Unless [Punch] changes in some way, in 18 months’ time we’ll be going down the same road when there is a repayment to be made. The business model failed and they need to do things differently if they are going to succeed in the future.”
Chris Lindesay, of the Sun Inn in Dunsfold, Surrey, co-ordinated a network of Punch tenants earlier in the year to communicate and share advice amid the uncertainty.
He said: “How can you be in a situation where you are taking 80% of the profit out of a business, supposedly in an equal partnership, then not able to pay your debts and having to be bailed out by your shareholders, and suddenly think everything is going to be rosy?
“This is not the end. This is no certainty. This is no relief. The hedgefunds who now own Punch are expected to earn 30% to 40% annual returns on their investments. Those returns won’t come from selling beer more fairly to their partners.”
Carol Ross, of the Roscoe Head in Liverpool, said Punch “cannot afford to change” because its tenants are “the only ones who will get their debt down”. “The tenants will just be squeezed even more,” she said.
'Good news'
But executive chairman Stephen Billingham said the restructure was a positive outcome for all Punch stakeholders. “This is good news for tenants and our staff. I would like to thank all our 400 staff for their hard work and support over a prolonged period of uncertainty. We can now move forward with a solid balance sheet and continue to progress our strategy and investment in our pubs.”
