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Rent Rise Forces Pub Closure In West London


Trampa501

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HOLA441
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HOLA442

Its not just over indebted.

PubCos were the biggest users of securitisation.

The reasons why they are not bust is that no-one can unravel the finance. There's not legal guidelines on taking aprt the debt.

So thee zombies live on. Selling the odd pub off whne it needs more cash. Ripping off LLs to pay for the debt.

The only good thing is it seems they have run out of people willing to take on a Punch or Enterprise tenancy now.

The number of empty pubs owned by them is huge - there's 3 where I live.

Over the last 5 years GK has been taking more of its tenanted estate into the direct managed area. I suspect as you say this is down to running out of mugs to take on Tenancies.

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HOLA443

Over the last 5 years GK has been taking more of its tenanted estate into the direct managed area. I suspect as you say this is down to running out of mugs to take on Tenancies.

GKs beer is total p1ss.

Fortunately the twee GK pub we go in when its nice allows a guest beer.

Fckign expensive mind.

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HOLA444

Yup.

In my brothers case he sold a viable cash generative business (contract cleaning) to go and live the dream of running a pub.

Id guess hed have been running himself ragged on contracts.

The appeal of a business within a 10 yard radius would have appealed.

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HOLA445
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HOLA446

Id guess hed have been running himself ragged on contracts.

The appeal of a business within a 10 yard radius would have appealed.

He didn't seem overly stressed. Was pulling in 35K plus on a week no longer than 45-50 hours.

I was amazed when he said he wanted to sell to run a pub (which he had no experience of). I tried to steer him down the route of perhaps working for a while in a pub role.

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HOLA447

Canada already cherry picked the best syrians about a year ago

Merkel is toast

and when she mentioned her open door policy, the countries they had to pass through to get to germany closed their borders

I loathe merkel, and can't wait to see her gone, she has done incredible damage to germany

The issue is not europe but t0sser domestic politicians including our own who have done nothing to address people's concerns and now it's reached a head

I just see a LOT of economic pain ahead - maybe it's because I'm a pessimist - I sincerely hope I'm wrong

I voted Brexit but I can agree with a lot of what you are saying.

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HOLA448

I think mass immigration is mistake in the long-run but I think we have to be careful that we don't start blaming it for everything.

In the mid-90s I did an apprenticeship. I worked 4 days, college 1 day a week. After transport costs I would have been able to afford ~43 pints of beer at the local pub (if I'd been stupid enough to drink that many!).

2013ish I saw the same apprenticeship, with the same company. 5 days work, 2 evenings at college. After transport costs (which have gone up massively) they'd be able to afford 24 pints of beer at the same local pub.

In 1990s I had the time and money to visit the pub frequently, I wouldn't be able to do that in 2013ish. I realise the above situation (apprenticeship) isn't that common but working longer hours for less money is.

I agree with you too. Certainly immigration should not make transport costs go up (maybe more crowded).

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HOLA449

The Pub Co's deliberately target the not so bright but may have some money in their pocket. Having worked for a couple of years for a pub co I knew many of the tricks.

I said to my brother before he signed the contract let me read it and I will find the traps. The classic one is where they can raise the rent at will.

I said go back to them and offer to sign the lease only with the provision they amend the contract to keep the rent frozen for 5 years or at most raised by no more than the RPI.

He ignored this advice and signed. 5 months later receives a 75% rent increase.

Fools and their money.

Jeez, they certainly saw him coming....rent reviews are a veritable sword of Damocles hanging over any leasehold business, but most landlords aren't that greedy.

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HOLA4410

Jeez, they certainly saw him coming....rent reviews are a veritable sword of Damocles hanging over any leasehold business, but most landlords aren't that greedy.

Most landlords don't have the benefit of the Tenant paying 30K+ (non refundable) upfront. The entire Tenancy - Pub Co model is based on tenant churn. Beer sales are just a sideline!

Think about it - if business and sales were so important why hand a tenancy to a mug with no experience in the trade other than from the customer side of the bar.

Edited by Kurt Barlow
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HOLA4413

http://mobile.morningadvertiser.co.uk/Legal/Property-law/Wandsworth-council-saves-pubs-with-Article-4-direction

"A London borough council has taken a ground-breaking move to be the first local authority in the UK to protect its pubs by removing permitted development rights from 120 venues.

'Pub-friendly' Wandsworth Council has issued a blanket Article 4 (A4) direction on 120 pubs and bars in the area meaning any change of use or development of a pub would need approval from the council."

With one simple action, Wandsworth has almost killed off the pub conversion industry in the borough. It will be interesting to see whether others follow.

A developer can still buy pubs, close them and leave them to rot for a year before applying, but it will be a riskier enterprise by far.

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