Stonegate pub chain investigated over treatment of tied tenants

Britain’s biggest pub operator faces a statutory investigation into its dealings with landlords running more than 3,000 venues.

• The pubs code adjudicator (PCA) launched an investigation into Stonegate Group over alleged breaches including failure to provide accurate repair information and incorrect rent calculations.
• Stonegate could be fined up to 1% of revenue — more than £16m — if found to have violated the code that governs pub-owning companies’ treatment of tied tenants.
• PCA Fiona Dickie said the regulator had “reasonable grounds” to suspect breaches and was now seeking further information from the company.
• Stonegate said it is fully committed to complying with the code and will cooperate fully throughout the investigation.