Regulator examines five-year period amid tenant concerns
The industry regulator has opened a statutory investigation into Stonegate Group over concerns it may have failed to treat tied tenants fairly, placing several well-known Gwynedd pubs under the spotlight. The Pubs Code Adjudicator (PCA) says it has “reasonable grounds” to suspect the UK’s largest pub company did not provide accurate and transparent information to both existing and prospective tied tenants — a potential breach of the Pubs Code, introduced in 2016.
Stonegate operates more than 3,000 venues nationwide, including The Castle, Bangor; Morgan Lloyd, Caernarfon; The Old Bulls Head, Bala; and The Mitre, Pwllheli. The PCA investigation will look at the company’s conduct between July 2021 and July 2026, a period that spans the sector’s post-pandemic recovery as well as ongoing cost pressures on pubs and hospitality.
What the Pubs Code requires
The Pubs Code sets out rules for large pub-owning businesses in England and Wales, seeking to ensure tenants who are tied to a landlord for beer and other supplies are treated lawfully and fairly, and that they are not worse off than if they were free of tie. Central to this framework is the expectation that pub companies provide clear, accurate and timely information to tenants when agreements are made or varied, and throughout the life of the tenancy.
Announcing the probe, Pubs Code Adjudicator Fiona Dickie said the investigation would determine whether Stonegate has met its statutory duties. She highlighted concerns raised in the regulator’s latest Tied Tenant Survey. According to the PCA, satisfaction among Stonegate tenants in their tied relationship has been the lowest of the regulated pub-owning businesses for at least the past three years, with particular worries over repairs to pub premises.
“This investigation will help us establish if Stonegate has met their duties under 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 PCA is calling on current and former Stonegate tenants — and other interested parties — to share evidence relevant to the issues under investigation. Submissions can be made until 5pm on Wednesday, 12 August. The regulator has stressed that individuals who provide information will not be identified in any subsequent report without their consent.
Local pubs named in Gwynedd
Several familiar premises in Gwynedd are among Stonegate’s estate. While the PCA has not singled out individual sites, the investigation’s findings could have implications for tenants at these locations, as well as for their staff and communities that rely on the pubs as social hubs.
| Pub | Location |
|---|---|
| The Castle | Bangor |
| Morgan Lloyd | Caernarfon |
| The Old Bulls Head | Bala |
| The Mitre | Pwllheli |
In a brief response, a Stonegate spokesperson acknowledged the announcement of the statutory investigation. The company also indicated it was “fully committe” — though no further detail was provided.
What this means for Gwynedd’s pub tenants and patrons
For tied tenants in Gwynedd, the scope of the probe — focusing on the transparency and accuracy of information provided by Stonegate — goes to the heart of decision-making about investment, rent commitments and day-to-day trading. Issues such as the handling of repairs can materially affect viability, especially for older premises common in North Wales’ town centres and coastal communities.
The Adjudicator’s emphasis on ensuring tenants are not disadvantaged compared with free-of-tie operators will resonate locally, where pubs face the twin pressures of rising input costs and fluctuating footfall. Should the PCA find breaches of the Code, it could set expectations for remedial action across the estate, potentially changing how information is shared with tenants and how property maintenance obligations are managed.
How to contribute evidence
The PCA has urged those with relevant experience to come forward. Submissions from past and present tenants can help establish the scale and impact of any issues. Key points for contributors include:
- Examples where information provided by the pub company about agreements, costs or obligations was inaccurate or unclear.
- Experiences relating to property repairs and maintenance obligations, including timeliness and communication.
- Any effects on business decisions, investment plans or trading outcomes linked to the information received.
Evidence can be submitted until 5pm on Wednesday, 12 August. The regulator says it will not identify individuals in its reporting without their permission.
For communities in Bangor, Caernarfon, Bala and Pwllheli — and across Gwynedd — the outcome will be watched closely. Local pubs remain vital meeting places as well as employers; clarity over rights and obligations within tied arrangements is likely to influence how resilient those businesses can be in the months and years ahead.
