Stonegate, the UK's largest pub operator with more than 4,500 venues nationwide, is under investigation by the Pubs Code Adjudicator (PCA) over potential breaches of the Pubs Code. The regulator said it has 'reasonable grounds to suspect' that Stonegate has 'failed' to treat its tenants fairly.
Scope of the Investigation
The PCA announced this week that it is investigating Stonegate's compliance with obligations to provide information to tenants and prospective tenants during the period from July 15, 2021, to July 14, 2026. The investigation will examine whether Stonegate provided a 'full and clear description of the premises, a list of initial works of maintenance, repair or improvement which must be done, and a rent proposal including a reasonable and justified profit projection'. It will also assess if the operator ensured prospective tenants had a 'sustainable business plan' in place.
The Pubs Code was introduced by the Government ten years ago to regulate the relationship between companies owning more than 500 tied pubs in England and Wales and their publicans. It applies to six major pub companies and requires that publicans receive all relevant information to make informed decisions, with discussions on rent, repairs, and business plans documented in writing.
Stonegate's Response
Stonegate acknowledged the investigation and stated it remains 'fully committed' to complying with the Pubs Code. A spokesperson said: '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.' The spokesperson added that the investigation currently refers to two specific cases, but no details about the pubs or venues involved have been disclosed.
Potential Penalties and Manchester Venues
If found in breach of the code, Stonegate could face a fine of up to one per cent of its total UK turnover, which stood at an estimated £1.6 billion in its last financial year. Stonegate operates numerous venues in Manchester, including Slug & Lettuce (on Albert Square and Spinningfields), Be At One, Walkabout, Via on Canal Street, and Yates on Portland Street. It also operates Ark and Popworld at Deansgate Locks, which are set to close permanently this weekend, leaving the venue completely empty. In Greater Manchester, Stonegate runs pubs such as the Temple Inn in Sale, Middleton's Edgar Wood, Denton's Old Peg, Salford's White Lion, and the Royal Oak in Stockport. There has been no suggestion that any of these venues are part of the investigation.
PCA Calls for Evidence
The PCA is seeking to speak to current and former tenants of Stonegate who may have been affected by the issues under investigation. Evidence can be shared via email at Investigations1@pubscodeadjudicator.gov.uk or by post.
