Key facts
- Star Pubs, owned by Heineken, is facing a potential probe by the UK's Pubs Code Adjudicator.
- The probe follows Star Pubs' termination of tenancy and threat to evict the owners of the Park Tavern in London.
- The tenant, MFM Pub Group, claims Star Pubs cut off beer supply and charged them for external purchases.
- Star Pubs cited serious lease breaches as the reason for the action.
- The Pubs Code Adjudicator can impose financial penalties of up to 1% of a company's UK turnover for breaches.
Star Pubs, one of the UK's largest pub chains operating over 2,000 sites and owned by Heineken, is under scrutiny by the Pubs Code Adjudicator (PCA). The potential probe follows Star Pubs' decision to terminate the tenancy of the Park Tavern in south west London and threaten eviction.
Amir Matinahmadi, who runs MFM Pub Group operating the Park Tavern, stated he invested over £150,000 into the site and is prepared to contest the eviction legally. MFM Pub Group alleges that Star Pubs cut off the pub's beer supply while attempting to force their exit and subsequently charged them £3,500 for purchasing supplies from elsewhere. Matinahmadi plans to refer Star Pubs' conduct to the PCA, asserting that the company has violated its obligations to deal with tenants fairly and lawfully.
In response, a Star Pubs spokesperson stated that the action was necessary due to "a number of serious breaches of their lease" and that they had no alternative "in the interests of the staff and customers." The company plans to reopen the Park Tavern after essential repairs and potentially a refurbishment. Star Pubs, established in 2008 after Heineken's acquisition of Scottish & Newcastle pubs, reported a pre-tax profit of £32m and revenue of £186m for the year ending December 2024. The group owns approximately 2,400 pubs in the UK.
This potential investigation comes shortly after the PCA launched a similar probe into Stonegate, the UK's largest pub landlord, for alleged mistreatment of tenants. The PCA, led by Fiona Dickie, upholds the Pubs Code established in 2016 to ensure fairer dealings between pub companies and their tenants. Breaches of the code can result in financial penalties of up to 1% of a company's UK turnover.