RE: Globe defaults on covenants for second quarter

http://www.morningadvertiser.co.uk/news.ma/ViewArticle?R=83464

@Matthew. Pubcos 'operate' pubs? Globe? S&NPE? Punch? etc.etc 'operate' pubs? Which pubcos 'operate' pubs Matthew?

Pubcos do NOT operate pubs; LESSEES 'operate' pubs. Pubcos are property companies with an anachronistic and rationally unsupportable supply right which gives them free rein to do nothing other than police the contracts, sit back and watch the profits rolling in. Pubcos have done this for so long their 'operational' role is ossified, they have no idea what to do when a business is failing except pontificate about how the tie works and has done for three hundred years - when it is glaringly obvious that it has not worked.

This is precisely why the pubcos are in utter denial about what has been happening to the industry they created. They have little sensitivity to real operational issues which is why pubs are failing. They know they are in the spotlight, they know they have to take part in industry talks and mediation al la ALMR yet they don't really know why. 'Oh, why oh why, can't it just go back to the good old days when we didn't have to think much about anything?'

They DO NOT know how to operate pubs; if they did, these discussions about the tie and the state of the industry would not be taking place.

This post replies to Matthew Evans > RE: Globe defaults on covenants for second quarter