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Ei pub group withdraws High Court bid over market rent only agreement

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Ei pub group withdraws High Court bid over market rent only agreement

Pub business Ei Group (formerly Enterprise Inns) has withdrawn a High Court appeal against a decision made by the Pubs Code Adjudicator. 

The dispute related to the implementation of a market rent only (MRO) agreement, which allows tenants to cut beer-ties with landlords.

MRO agreements were introduced in the 2016 Pubs Code and allow tenants to purchase beer from any supplier, in exchange for paying market rent on a site.

The new agreement breaks the centuries old beer-ties, in which tenants paid reduced rents but were forced to purchase their beer through the landlord.

The dispute with the regulator is said to have centred around whether a new contract had to be drawn up by the pub owner, something tenants argued would be unnecessarily costly and act as a deterrent to pursuing an MRO agreement, according to The Telegraph.

A spokesperson for Ei Group said: “Whilst we received permission to appeal an award from the PCA relating to the form and method of delivery of an MRO-compliant agreement, we believe that subsequent awards from the PCA’s office have provided further helpful clarity in this matter. We have therefore discontinued our appeal.”

Ei Group’s Simon Townsend to provide Arena Savoy Lecture 2018>>

Ei Group sees EBITDA drop to £287m despite like-for-likes up in leased and tenanted business>>

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