The company behind a number of pubs across Liverpool is being investigated by the industry's watchdog over concerns it may have failed to treat its tenants fairly. Stonegate Group, the UK's largest pub operator, owns thousands of venues nationwide, including a number of pubs and bars across Merseyside.
The company is behind the region’s Popworld, Slug & Lettuce, Be At One, Yates, The Brookhouse, Peter Kavanagh’s and The Royal Oak to name a few. While Stonegate gives out property through several commercial models, usually involving public houses, bars, or hospitality venues. Instead of standard residential lettings, they partner with independent operators through specific types of business agreements.
Formal Investigation Launched
Stonegate is now facing a formal investigation by the Pubs Code Adjudicator (PCA), which oversees the relationship between large pub companies and their tied tenants. The regulator said it has "reasonable grounds" to suspect Stonegate may have failed to comply with legal requirements designed to ensure tied pub tenants receive accurate, transparent information before taking on or running a pub.
The investigation will examine the company's conduct over a five-year period between July 2021 and July 2026. However, at the time of writing, the specific venues in question have not been revealed.
Stonegate's Response
A spokesperson for Stonegate told the ECHO: "We acknowledge the announcement by the Pubs Code Adjudicator (PCA) regarding the launch of a statutory investigation. Stonegate is fully committed to complying with the code and ensuring all Publicans are treated fairly.
"Stonegate has communicated at length with the PCA over the two specific cases that form the basis of this investigation, and we will cooperate fully throughout. We remain committed to working fairly and transparently with our publicans and to building strong, successful partnerships."
Background and Tenant Satisfaction
Stonegate is domiciled in the Cayman Islands and is ultimately owned by private equity firm TDR Capital, which also holds a majority stake in Asda. The Pubs Code Adjudicator said concerns were raised following its annual survey of pub tenants. Stonegate has recorded the lowest tenant satisfaction rating of the six regulated pub companies for the past three consecutive years.
Fiona Dickie, the Pubs Code Adjudicator, said: "Upholding the core principles of the Pubs Code, ensuring fair and lawful dealing and that tied tenants are no worse off than free-of-tie operators, is our priority." She added that the code gives tied pub tenants, and prospective tenants, important rights to transparent information, including details about premises and rent agreements.
Pubs Code and Investigation Scope
The Pubs Code was introduced in 2016 to create a fairer relationship between large pub-owning companies and the tenants who run their venues. This is only the second formal investigation launched by the watchdog since the code came into force a decade ago. The regulator is now appealing for information from current and former Stonegate tenants who believe the company may have breached the rules.
