Pub group owned by billionaires 'demanding rent' amid Covid-19 crisis

  • 6/26/2020
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A pub group owned by the billionaire Reuben brothers has been accused of pushing its tenants towards bankruptcy by refusing to cut rents due on premises closed because of the coronavirus pandemic. The Reubens – David, 81, and Simon, 79 – are ranked second in the Sunday Times Rich List with a fortune of £16bn and own the Wellington Pub Company, which has a portfolio of 750 pubs. The business has demanded full rent from some of its pub tenants who have not traded since March. The tenants fear that the bills will force them out of business if they are not given some concessions such as a rent holiday or reduced bills. There is nothing to suggest that the Reubens have been specifically involved in or are aware of the rent demands. Kate Ahrens, who has rented the Geese and Fountain in the Vale of Belvoir, Leicestershire, from Wellington since 2015, told the Guardian and ITV News: “We took on this pub when it had been shut for four years. We have scrimped and saved and on a shoestring built it up to what it is now. And we were maybe, maybe, just beginning to see the light at the end of the tunnel in terms of just making a little bit of money for us. That’s gone. “And, you know, that’s fundamentally, that’s the choice I’m looking at, is either be completely skint for years or be completely bankrupt.” Joanne Antick, another Wellington tenant who runs the King’s Arms in Brentford, west London, added: “I really don’t understand, how can we pay rent when we don’t have any income? I really hope that they realise we just can’t do this. I will go under. “They [Reuben Bros] are successful people which I admire. God, I admire anybody that’s worked hard and is successful but with success comes responsibility. I’m successful in my small way. They’re so successful and they bought all these pubs. Eight hundred pubs. And with that they bought my life and they’ve got to be responsible ... I need help”. Both tenants, along with others, complain that their efforts to secure rent reductions – or be given rent holidays – have been unsuccessful. The row between the tenants and their pub company has erupted as the prime minister announced on Tuesday that some pubs and bars will be able to reopen from next month. It also comes just days after the government extended rules designed to allow businesses more time to pay debts run up by the lack of trade during the coronavirus pandemic, while it has published a voluntary code of practice designed to advise landlords and tenants on how to resolve disputes caused by the pandemic. The code states: “Landlords should be willing to consider a reasonable case put forward by a tenant in such distress and whether some temporary arrangement the landlord can reasonably offer might enable the tenant to survive.” It adds: “Landlords seeking to refuse concessions should be clear with their tenants about why they are doing so. This means providing a reasonable explanation of their decision which clearly takes into account the information provided by the tenant.” A spokesperson for Wellington said: “Wellington is a standalone business and has obligations in the form of a securitisation for which payments must be made quarterly. “We can confirm that rent was invoiced in June in accordance with lease/tenancy agreements in place and other legal requirements. The invoices were sent out with a covering note and reference to the publicly available statement [which is] explicit that action against rental arrears arising solely due to the closure period of pubs caused by Covid-19 will not be taken. “The number of properties involved means it takes time to contact all tenants and this exercise is ongoing.” Sir Bernard Jenkin, the Conservative MP who chairs parliament’s liaison committee, said he had spoken to the Reuben family on behalf of Wellington tenants in his constituency of Harwich and North Essex. “I am very clear that the period during which pubs and restaurants were locked down, they should not be required to pay rent for that period at the very least, and they should really not be required to pay rent until they got back on their feet again.” The brothers are also part of a consortium currently looking to buy the Premier League football team Newcastle United and their family has donated more than £500,000 to the Conservative party over the past year.

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