Ei Group reveals multi-million pound tenant support package amid mounting pressure
Ei Group has granted a rent holiday for some of its bigger pubs amid mounting pressure for pub companies to announce more support for tenants.
A cross-party group of 60 MPs wrote to Ei Group last week urging it to cancel rents for tenants during the coronavirus crisis.
The letter said it was “unfair” for tenants to shoulder the financial burden of the coronavirus lockdown, which has forced all pubs to close.
The pub company, which was bought by Slug and Lettuce owner Stonegate in March, has today announced it will offer tenants that are not eligible for government grants a rent credit for the three months to June.
Pubs with a rateable value of less than £51,000 are not eligible for the government’s coronavirus grant scheme. The rent credit will effectively wipe out the rent due for April, May and June.
Meanwhile tenants that are entitled to grants of between £10,000 and £25,000 will receive trade credits of either 75 per cent or 50 per cent of the value of three months rent.
This is designed to help pubs cover the cost of buying stock to prepare to reopen.
Ei Group said the support scheme represented a multi-million pound investment.
The government announced this week that some pubs and other hospitality venues could reopen in July at the earliest.