Rent fears leave pubs with survival battle amid coronavirus lockdown
Pub landlords in the Black Country fear they will be left struggling to survive if they are forced to pay rent for the months they are closed during lockdown.
Pubs have seen their income disappear after being forced to close last month shortly before the coronavirus lockdown was announced.
Most pub companies and breweries have deferred rent payments, but landlords will still be expected to pay the cash owed at a later date.
It has caused real concerns for some pub bosses who fear they will not be able to meet the costs, especially if they are ordered to stay closed for months.
Pubs are expected to be among the last sectors to re-open when the lockdown is eventually eased by the Government.
Landlords of smaller pubs have been able to apply grants from the Government to help them survive the lockdown, but some fear that will not be enough. Other costs are still having to be met, such as electricity and water bills, particularly at venues where landlords live.
Pubs pay rent based on their income, meaning the busiest prior to the lockdown face the steepest bills.
It means pubs could re-open finding themselves owing thousands of pounds in rent. Pub companies say they are communicating with and supporting their venues.
An online campaign calling for rent payments to be scrapped during lockdown has been gathering momentum over recent days.
The boss of a popular Wolverhampton city centre pub owned by Ei Group, formerly known as Enterprise Inns, told the Express & Star: "Pub companies are deferring rent but they are still charging rent. It's racking up and some are going to open with debt around their heads.
"Quite a few pubs in the town, and private pubs, are being asked to pay full rent. Pubs are going to be the last to open. If somebody pays £5,000 a month they are going to end up owing £25,000.
"If I hadn't got this small business grant I don't know what I would do."
The pub manager, who asked to remain anonymous, said it could be down to the Government to step in and save pubs if they are forced to stay shut over the summer.
"I think they will have to do something, give a loan to the pub companies or something.
"At the moment our area manager is saying apply for this, VAT is being deferred. We're getting help from every other body except them. We're getting nothing from the pub company."
A landlord of 20 years at another city centre pub, also run by Ei, who pays around £2,000 a month in rent, said: "I'm still paying utility bills, gas and electric, public liability insurance. Cash flow is tough being a small public house. I've had to put some money in from my savings over the years to keep it afloat.
"I've applied for the grant but if we're shut longer than three months that's £10,000 rent. It will cover the costs and I'm back to square one. I can't see the Government giving more money out.
"If it carries on until Christmas I don't think I will be here."
An Ei Publican Partnerships spokesman said: “We continue to communicate directly with our publicans and have advised that rent and charges continue to be deferred for the foreseeable future. We will be working with each of our publicans on an individual basis in order to best provide the right level of support and assistance in each case when we are permitted to re-open for business.”
