Greene King writes to almost 1,000 tied tenants outlining rent discussion plans

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Delivered: Greene King has written to tied tenants opening support discussions

Pubco and brewer Greene King has written to 975 of its tied tenants outlining plans for what it is calling individual discussions around rents during the coronavirus lockdown.

Eligible tenants will be able to apply for the Greene King Pub Partners Support fund where they will be able to access immediate financial help to support with rent payments. The funding is also expected to help tenants when it comes to reopening.

There will also be support for tenants in need of further help, even after Government grants and other relevant schemes have been accessed, Greene King said.

However, Green King has not outlined what circumstances would make a tenant eligible for the funding, nor has it said how much is in the pot.

One-to-one discussions

What the pubco has made clear is one-to-one discussions will take place between tenants and their business development managers over the next four weeks and the financial support is in addition to other help Greene King has given tenants.

Some of the support already offered to Greene King operators includes deferred rents and free keg and cask beer replacements for out-of-date stock when pubs are able to reopen.

In the letter to tenants, Greene King Pub Partners managing director Wayne Shurvinton said: “In addition to our immediate support to defer rent and the subsequent Government interventions, we would like to work with you on an individual basis to understand how we can best tailor any further financial support on rent, where appropriate.

“While pubs remain closed, we will be focusing support where it is needed most now, giving due consideration to Government support provided.

“I’m sure you’ll appreciate that the immediate support we offered and the opportunity to enter into one-to-one discussions is in stark contrast to many other retail and hospitality businesses with many facing insolvency action with statutory demands from landlords already being served.”

Not had the opportunity

It continued: “Many of these businesses have not had the opportunity to access the support, financial or otherwise, that we are providing to you as a tied pub partner.

“Please be assured that we will do all we can to support you during the forced closure period and beyond once your pub reopens. 

“Our view is that many pubs will be affected differently and there will not be a one-size-fits-all solution. 

“Our goal will be to provide an appropriate amount of targeted financial support to those partners who need it the most while at the same time ensuring the financial survival of our business and the 38,000 employees who depend on us.”