Table of Contents Show
The Pubs Code Adjudicator has launched a formal investigation into Stonegate Group over suspected breaches involving the information and treatment provided to tied pub tenants.
The Pubs Code Adjudicator Stonegate review will examine the company’s conduct over the five-year period from 15 July 2021 to 14 July 2026.
Regulator Fiona Dickie said there were reasonable grounds to suspect that Stonegate may not have complied with duties to provide accurate and transparent information to existing and prospective tenants. However, the adjudicator stressed that no conclusion has yet been reached and the opening of the investigation does not prove that Stonegate breached the code.
Why Is the Pubs Code Adjudicator Reviewing Stonegate?
The investigation will examine whether prospective tenants received clear and accurate details about the physical condition of pubs before entering agreements.
This includes whether Stonegate provided an accurate schedule of condition, disclosed existing problems and produced a complete list of repair, maintenance and improvement work that needed to be completed.
The regulator will also consider allegations that some proposed work was discussed with tenants but not recorded properly, completed on time or included in the required documentation.
Another major part of the review concerns rent proposals and financial projections. The adjudicator will investigate whether prospective publicans were given projections that were unreasonable, unrealistic or insufficiently supported by evidence.
These figures can be particularly important because they may influence both the proposed rent and a tenant’s business plan. The investigation will therefore consider whether prospective operators were given enough reliable information to assess whether a pub could operate sustainably.
What Are Tied Pub Tenants?
A tied tenant operates a pub owned by a larger pub company under an agreement that can require certain drinks or other products to be purchased through that company.
The statutory Pubs Code applies to qualifying pub companies with at least 500 tied pubs in England and Wales. Its core principles require fair and lawful dealing and state that tied tenants should be no worse off than operators who are free of the product tie.
Stonegate operates more than 4,500 venues across its wider estate, but the regulator said the company has more than 3,000 tenanted and leased pubs in England and Wales. The investigation concerns the part of its business governed by the Pubs Code rather than every managed venue operated directly by Stonegate.
Are Stonegate’s Business Development Managers Being Investigated?
The review will examine whether Stonegate ensured that its business development managers treated tenants fairly and lawfully.
It will also assess whether discussions with publicans were properly recorded and whether reasonable requests for information relating to rent negotiations were answered. Where requested information was not provided, the code may require an explanation to be given within seven days.
The regulator is separately investigating whether Stonegate supplied a detailed and accurate account of its compliance, including breaches or alleged breaches, through its annual compliance reporting.
What Has Stonegate Said About the Investigation?
Stonegate said it acknowledged the statutory investigation and would cooperate fully with the adjudicator.
A company spokesperson said Stonegate remained committed to complying with the Pubs Code and ensuring that its publicans were treated fairly. The group said the investigation arose from two specific cases that it had already discussed at length with the regulator.
The company has not accepted that it breached the code, and the regulator has not made a finding against it.
What Did the Tenant Satisfaction Survey Find?
The investigation follows continuing concerns about Stonegate’s performance in the adjudicator’s annual tenant research.
In the 2026 Tied Tenant Survey, 39% of Stonegate respondents said they were satisfied with their relationship with the company. This was the lowest score among the six regulated pub-owning businesses and represented a four-percentage-point fall from 2025.
The PCA said Stonegate tenants had recorded the lowest satisfaction level among regulated companies for at least three years. Concerns identified by tenants included repairs and the condition of pub premises.
The survey results are not themselves proof of a Pubs Code breach. They provide background information about tenant experiences, while the statutory investigation will examine evidence against specific legal duties.
What Could Happen After the Stonegate Review?
The Pubs Code Adjudicator can make recommendations, require a pub-owning business to publish information or impose a financial penalty when an investigation establishes a breach.
The maximum financial penalty is 1% of the pub-owning group’s annual turnover. Any enforcement decision would depend on the evidence, the seriousness of a proven breach and the regulator’s final findings.
There is currently no announced completion date for the investigation.
The PCA has asked current and former Stonegate tenants, employees, advisers and other interested parties to submit relevant evidence. Information must be received by 5pm on 12 August 2026, and contributors will not be identified in the final report without their consent.
Until the investigation is completed, the Pubs Code Adjudicator Stonegate review remains an examination of suspected non-compliance rather than a confirmed finding of wrongdoing.
Feature image – Source
