Community-operated pub ceases trading due to £50,000 rent arrears

A pub operated by the community in south-east London has ceased operations following its landlord’s demand for payment of “longstanding” rent arrears exceeding £50,000. Kirsty Dunlop, one of the three volunteers managing the Star of Greenwich pub, stated that Greenwich Hospital, the landlord, requested the full settlement of the outstanding rent. This demand came after Greenwich Hospital had previously approved a repayment schedule, contingent on the pub obtaining funding to guarantee its operational sustainability. Greenwich Hospital, which functions as a charity rather than a medical facility, was founded by royal charter to assist naval personnel and their relatives. It operates autonomously but falls under the supervision of the Ministry of Defence (MoD). The Ministry of Defence has been approached for a statement. Ms Dunlop, together with Lisa Donohoe and James Gadsby Peet, raised funds to relaunch the Star of Greenwich in 2023 as a non-profit cooperative, following its closure under its prior management. “For the last 18 months, myself, James, and Lisa have worked tirelessly, taking no money, no profit, or anything like that from the business to keep the Star alive,” she informed BBC London. Ms Dunlop stated that the establishment had evolved into a “community asset” for residents of east Greenwich, serving as a location for language classes, temporary dining events hosted by refugee chefs, family playgroups, and assistance for refugees. Ms Dunlop clarified that the rental amount sought by Greenwich Hospital “would not be viable” given the income generated by the pub. She mentioned that an agreement was reached to pay half of the monthly rent, conditional on obtaining additional funding to render the pub a sustainable venture. Aspirations included raising capital to acquire the premises and applying for financial assistance from the government’s community ownership fund. Ms Dunlop indicated that she had received no updates regarding their application since prior to the general election in July, nor was it referenced in the previous month’s Budget. The fund administered by the Ministry for Housing, Communities and Local Government (MHCLG) aims to enable groups to assume ownership of community assets and facilities facing potential loss. Ms Dunlop suggested that the funding could settle the outstanding arrears and facilitate modifications to the building, thereby enhancing its financial viability. A spokesperson for MHCLG stated: “We recognise uncertainty is challenging for groups seeking to save vital community assets. The government is carefully considering all available options and will confirm plans in due course.” Ms Dunlop mentioned that the repayment scheme proposed by Greenwich Hospital was initially set to conclude in January 2024, but extensions sought by the pub’s management were approved. As the funding necessary to guarantee the pub’s sustainability had not yet been obtained, the landlord terminated this agreement and demanded the full payment of the rent debt, which exceeds £50,000. “In the current climate, it’s very hard to keep businesses open,” Ms Dunlop remarked. She added: “We try to keep our costs down and not put it back on the customer so it’s not extortionate and people can enjoy a social setting that’s affordable.” The establishment ceased operations on Thursday evening. Ms Dunlop stated that the volunteer management and personnel had “tried so hard” to ensure the pub’s viability. “The closure would have such a generational impact,” she further commented. She elaborated: “A pub isn’t just about drinking; it’s about inclusivity and a place to meet. We’re trying to create a space where we listen to the community and provide them with what they need and require.” A leasing document pertaining to the pub, reviewed by BBC News, identified the office for the Secretary of State for Defence, acting on behalf of Greenwich Hospital, as a party to the contract. The MoD had not provided a response to a request for comment by the time of publication.