Greene King gives tied tenants 90% rent reductions

Greene King will offer 90% rent reductions to tenants as it rolls out its latest multimillion-pound support package.

Rents for tied tenants will be reduced by 90% from 11 June until four weeks after sites are able to legally reopen, with the reduction falling to 50% for the four subsequent weeks.

Tenants will also receive eight weeks of trade support when buying barrels of beer or cider from Greene King.

Wayne Shurvinton, managing director of Greene King Pub Partners, said: "From the outset balancing as much support for our tenants as we possibly could alongside ensuring the long-term survival of Greene King has been our priority.

"By deferring rents before pubs were ordered to close, we removed any immediate cashflow concerns for our partners and since then have reassured them that we would support them in every way possible when it came to rent and I'm very pleased to announce these latest measures today.

"None of us are immune to the financial implications of pubs closing and we all have to work together to survive this existential threat to our industry. I'm grateful to every single one of out tenants who has worked with us and trusted that we were doing all we could to look after them.

"We feel we've played our part and it is critical the government continues to play its part in supporting our sector. The support so far is extremely welcome but as a tenant ourselves with over 500 landlords, we have not received rent concessions in the way we are offering to our tenants and further support on rent payments is needed to support the recovery of the pubs sector."

The pub giant, based in Bury St Edmunds, Suffolk, said it has already made rent concessions amounting to £4m to cover the initial 12-week closure period. All rents have been deferred since 17 March with further support to be rolled out in stages.

Picture: Shutterstock