The Pubs Code Adjudicator has launched a formal investigation into Stonegate Group over suspected breaches of the statutory Pubs Code.
Stonegate is one of the six regulated pub-owning businesses and operates an estate of more than 3,000 tenanted and leased pubs across England and Wales.
The Pubs Code Adjudicator said it has reasonable grounds to suspect that Stonegate may have failed to comply with its legal obligations under the Pubs Code.
The suspected breaches relate specifically to duties to provide accurate and transparent information to both existing and prospective tied pub tenants.
The investigation follows a period of close regulatory engagement.
It will examine Stonegate’s conduct over a five-year period, from 15 July 2021 to 14 July 2026.
Fiona Dickie, the Pubs Code Adjudicator, said: “The Pubs Code provides important rights entitling tied pub tenants, and those in negotiations to take on a tied pub, to transparent information including with regard to the premises and the rent. This investigation will help us establish if Stonegate has met their duties under the Pubs Code.
“Upholding the core principles of the Pubs Code, ensuring fair and lawful dealing and that tied tenants are no worse off than free of tie operators, is our priority.
“The results of our 2026 Tied Tenant Survey identified concerns and issues relating to the satisfaction of tenants of Stonegate in their tied relationship, which has been the lowest of the regulated pub-owning businesses for at least the last three years. Particular tenant concerns relate to repairs to the pub premises.”
As part of the investigation, the Pubs Code Adjudicator is collecting evidence.
It is particularly seeking information from current and former Stonegate tenants who may have been impacted by the issues under investigation.
Dickie added: “It is important that previous and existing tenants, and other interested parties, provide us with information to support this investigation.
“This will help determine whether the Pubs Code has been broken and, if so, the impact on tenants and what further action should be taken.”
Any tenants or interested parties who provide information for the purposes of the investigation will not be identified in the investigation report without their consent.
The deadline for submission of evidence is 5pm on 12 August 2026.
The Pubs Code Adjudicator said it has not yet reached any decision as to whether Stonegate failed to comply with the Pubs Code, or the extent of any potential non-compliance.
The investigation will examine whether Stonegate may have failed to provide prospective tenants with a full and clear description of premises, including an accurate Schedule of Condition and disclosure of specific problems in the premises.
It will also consider whether Stonegate provided defective lists of initial works to be carried out at pub premises.
This includes whether Stonegate failed to include details of all initial works, failed to complete works it had represented would be carried out, failed to include works required before an agreement came into force, or failed to specify dates for works due to be completed after an agreement had been entered into.
The investigation will also examine whether Stonegate provided prospective tenants with unreasonable or unrealistic projections in the context of rent proposals.
The Pubs Code Adjudicator will consider whether that data was sufficiently clear, detailed and justified, and whether it allowed tenants to understand the basis of its calculation.
It will also examine whether this meant Stonegate failed to ensure prospective tenants’ business plans were sustainable.
The investigation will further consider whether Stonegate failed to comply with reasonable requests by tenants relevant to rent negotiations, or requests that would have helped tenants understand rent.
Alternatively, the Pubs Code Adjudicator will consider whether Stonegate failed to provide a reasonable explanation within seven days as to why information was not provided.
It will also examine whether Stonegate failed to ensure that its business development managers dealt fairly and lawfully with tenants, and whether notes of discussions with those tenants were recorded properly in accordance with the Pubs Code.
In addition, the Pubs Code Adjudicator will investigate whether Stonegate failed to provide a detailed and accurate account of its compliance with the Pubs Code.
This includes instances of breaches or alleged breaches, and any steps taken to address them, as required as part of its annual compliance report.
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