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PUBLICAN WARNS PUB LICENSEES FACE FINANCIAL RUIN AMID RENT CONTROVERSY

​A leading publican has warned that many licensees across the country are facing financial ruin due to the decision by several pub companies including one of the largest, Punch Taverns to continue to demand rental payments during the period of the Coronavirus lockdown.

Mike Mercer, licensee of the Albion Inn in Chester, Cheshire has spoken of his concerns that many pubs and bars simply won't survive due to the stance taken by some of the larger pub companies. The ex-Merchant Navy Radio Officer who has been at the helm of the Albion for the past 50 years says he is at a loss to know how his Landlord, Punch Taverns expect their licensees to pay large back-dated rents in full from a position of having had no trade or takings since the Lockdown began in March.

Whilst some smaller pub companies and breweries including Admiral Taverns, Robinsons, Shepherd and Neame, Adnams, Fullers, Wadworth, Youngs and Joules have cancelled rents for licensees during the lockdown, larger companies including Punch, Star Pubs & Inns, Greene King, Ei Group and Marstons have all so far decided not to follow suit leaving thousands of publicans across the country facing financial ruin and pubs in danger of permanent closure.

Mike said "The public may not be aware that despite being currently unable to trade, many licensees are currently being asked to pay full rent, back-dated to 20th March which was the date the Government ordered the shut-down of all public houses. With no trading or income, these hard-working publicans face financial ruin or worse still – bankruptcy. The fact that Punch has to generate income is understandable, however they will have received financial help but are not operating in the spirit of the Government's wish for fairness across the business sector. If the current situation does not change, along with many other places, Chester stands to lose many of its iconic public houses, including the ever-popular Albion Inn.”

Mr Mercer is so worried about the situation faced by several local pubs including The Albion that he has written to Chester's MP Chris Matheson to highlight the issue. Speaking of the support he had received from the City's MP, Mr Mercer said "Chris Matheson has aired his concerns in a letter to Punch Taverns CEO, Clive Chesser, but as yet is awaiting a response. Mr. Matheson was particularly concerned about the possible shut-down of the Albion, which since 2016, has been listed as an Asset of community Value",

“With no indication of an actual date for pubs to open and all Punch owned pubs being required to complete a 25 page risk assessment document, without any clarity as to whether the Government might change the 2m social distancing rule, it is difficult for smaller pubs (without outside drinking areas) like The Albion to prepare for actual opening in a viable way.” said Mr Mercer.

Although he is remaining ever the optimist, the permanent closure of the Albion Inn looks forever a possibility and Mike believes more public awareness of the current situation facing licensees is needed. With pressure mounting on "the big six" pub companies including Punch Taverns to cancel rents including from a cross party group of MPs and several leading industry groups, Mike is urging members of the public who are keen to preserve their local hostelries and to stop the decimation of many small public houses to contact the groups who are leading the case on behalf of licensees including The British Pub Confederation, CAMRA (Campaign for Real Ale), The British Beer and Pub Association and PICA (The Pubs Independent Conciliation and Arbitration Service) to help ensure that pubs like The Albion Inn, many of which are at the heart of their local communities, have a viable future.

The Albion Inn is a much-loved local located on the corner of a quiet residential street in Chester's historic City centre and one of the last in the city to retain a traditional 3 room layout of bar, lounge and snug. The Albion is well known for its cosy ambience, period Victorian decor, WWI memorabilia and its reputation as a no-nonsense pub serving real ale and a menu of classic home cooked British dishes. It has been featured in several good pub guides, received plaudits from leading food critics and in 2010 was praised by Celebrity Chef Jamie Oliver for the quality of the beer and food on offer. The pub was listed as an Asset of Community Value in 2016.  The Albion Inn has been run since 1970 by Mike Mercer, Chester's longest serving Licensee.

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