Rent event: Star previously argued RPI rent increases constitute a tenant rent assessment or review unsuccessfully during an arbitration but chose not to appeal the eventual award Heineken’s pub arm, Star Pubs and Bars, has retracted a policy stating RPI rent increases constitute a tenant rent assessment or review, according to an announcement by the industry regulator.
As outlined by the pubs code, tenants have the right to a code rent assessment proposal (RAP) if there has been no rent assessment during the previous five years.
However, according to an update on 18 February, pubs code adjudicator (PCA) Fiona Dickie revealed Star had refused to provide tenants with an RAP because, the operator argued, annual retail price index (RPI) rental increases during the previous five years counted as an assessment or a review.
Heineken boss Dolf van den Brink, who only took charge of the group last year, now plans to cut around 10 per cent of the group s 85,000-strong global workforce.
Bitter blow: your code rights may be more important now than ever and I want you to know that my office and I are here to protect them during this hugely challenging time, PCA Fiona Dickie wrote to tied tenants Pubs code adjudicator (PCA) Fiona Dickie has approved a new declaration to ‘pause and preserve’ key rights during fresh lockdown restrictions and written to tied tenants in recognition of yet another ‘bitter blow’.
This latest declaration marks the continuation of two prior agreements with the regulated pub companies – Admiral Taverns, Ei Group, Greene King, Marston’s, Punch and Star Pubs & Bars – and will effectively stop the clock on a number of code deadlines that apply to tenants making arbitration referrals during an emergency period between 6 January and 31 March.
Update following PCA investigation into Star Pubs & Bars
Next steps following the investigation into Star Pubs & Bars use of unreasonable stocking terms in proposed Market Rent Only (MRO) tenancies
From:
22 December 2020
The Pubs Code Adjudicator (PCA) recently published the findings of its investigation into Star Pubs & Bars in which it found that Star had committed a total of 12 breaches with the result that it had frustrated the principles of the Pubs Code. As well as identifying how the company had offered stocking terms that had acted as a deterrent to tenants pursuing a free-of-tie tenancy, the PCA highlighted systemic corporate failures by Star in its approach to compliance.
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The Pubs Code Adjudicator encourages openness and transparency in the operation of the Pubs Code etc. Regulations 2016. Publication of awards made in Pubs Code arbitrations, or summaries of those awards, enables the industry to better understand previous decisions and consider how the Pubs Code is being applied in individual cases. Neither the Pubs Code Adjudicator nor an arbitrator is bound to follow published awards in applying the law, but such awards can be used to support the industry’s consideration of the proper interpretation of the Pubs Code. Parties are encouraged to take independent professional advice about their situation.