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Last updated: 24 April 2026
Most pub licensees think about pubco failure only when it’s too late—when the administration notice lands on the doormat and the phone lines go silent. What makes this worse is that your legal protection as a tenant in a tied pub is real, but incomplete, and the rules change depending on whether you’re under a Pub Code agreement or a traditional tenancy. I’ve seen licensees lose thousands because they didn’t know what they were entitled to, and I’ve also seen others navigate administration cleanly because they’d read the paperwork they signed three years earlier.
When a pubco goes into administration, your rights are determined by three things: the type of agreement you signed, whether you’re protected under the Pub Code, and how fast you act. This article explains exactly what happens, what you’re protected against, and what steps to take immediately if your pubco fails.
Key Takeaways
- When a pubco enters administration, your tenancy agreement doesn’t automatically end—it passes to an administrator who may choose to honour or disclaim it.
- Pub Code-protected agreements give you statutory rights to a new tenancy or compensation if your agreement is disclaimed, but only if you meet the criteria.
- You remain liable for rent arrears accrued before administration, and administrators will pursue payment with legal backing.
- The first 48 hours after administration is announced are critical—contact the administrator directly and document all communications in writing.
What Happens When a Pubco Goes Into Administration
When a pubco enters administration, your tenancy agreement becomes the property of an insolvency practitioner, not the company you signed it with. The administrator’s job is to either sell the company as a going concern, realise assets, or wind it down. Your pub is an asset—either as a potential source of rent revenue or as a property to be sold.
From the moment administration is declared, the pubco stops operating as normal. Their head office staff may still answer phones, but they’re now answerable to the administrator and the courts, not to you. Rent demands, BDM support, tie enforcement—all of it is technically suspended pending the administrator’s decisions. In practice, what happens next depends on whether the administrator decides to keep tenancies running or disclaim them.
Disclaimer vs. Continuation
An administrator has a choice about every tenancy. They can either keep the agreement running (because the monthly rent is valuable income) or disclaim the agreement (because the costs of maintaining it exceed the benefits). If they disclaim your tenancy, they’re essentially walking away from it—which sounds good until you realise what it means legally.
If your agreement is disclaimed, you don’t automatically become a free tenant. Instead, you become an occupant of a property that the administrator no longer has a contractual obligation to manage. This creates a vacuum. Your tenancy agreement doesn’t exist anymore, but neither have you been formally evicted. You’re in limbo—and the property itself may be subject to other claims or charges.
Your Legal Rights as a Tied Tenant
Your protection depends entirely on whether your agreement falls under the Business Tenancies Act 1954 and whether you’re covered by the Pub Code. This is why reading your tenancy agreement matters—not for fun, but because those words determine what happens to you in a crisis.
Business Tenancies Act 1954 Protection
Most traditional pub tenancy agreements are protected under the Business Tenancies Act 1954, which gives you a statutory right to a new tenancy when your agreement expires. The critical word is when—this protection applies at renewal, not during administration. However, if an administrator disclaims your agreement during the term, they’re ending it early, and the Act gives you the right to apply to the court for a new tenancy as compensation.
This right is valuable, but it’s not automatic. You have to apply to court within a specific timeframe after disclaimer. Many licensees don’t know this exists, so they lose it by default.
Pub Code Protection
If your agreement is dated after 3 April 2015 and you’re a small business (fewer than 30 staff), you’re protected under the Pub Code statutory scheme. The Pub Code gives you explicit rights if your agreement is disclaimed:
- The right to a new tenancy under similar terms, or
- The right to compensation for loss of business, or
- In some cases, the right to buy the property from the administrator at market value
However, these rights only apply if you trigger them. You must serve notice on the administrator that you wish to exercise your Pub Code rights, and you must do it within defined timeframes. Miss the deadline and you lose the right permanently.
The Pub Code also gives you the right to a low-cost arbitrator to resolve disputes with your pubco before administration, though this is academic once insolvency happens.
Older Agreements and Traditional Contracts
If your agreement predates the Pub Code and doesn’t fall under the Business Tenancies Act (some older tied agreements are excluded), your protection is minimal. You’re essentially at the mercy of the administrator. This is rare, but it happens—particularly with very old leases or unusual contractual arrangements. Check your agreement now. Don’t wait for administration to find out.
Rent, Arrears, and Your Financial Liability
You remain legally liable for rent accrued before and during administration until an administrator formally disclaims your agreement. This catches many licensees off guard. They assume that once a pubco is in administration, they don’t owe rent. That’s wrong.
Pre-Administration Arrears
Any rent you owe before administration is declared becomes a claim against the pubco’s estate. The administrator will pursue it because it’s an asset. They can obtain a court judgment against you and enforce it through bailiffs or county court proceedings. Your only defence would be if you could prove the pubco was in breach of the agreement (e.g., failed to maintain the property), but that’s a high bar during insolvency.
Rent During Administration
If the administrator continues your tenancy (rather than disclaiming it), you must keep paying rent. The administrator will demand it—sometimes more aggressively than the original pubco, because it’s their statutory duty to maximise asset realisation. If you stop paying, they can seek an eviction order on the same grounds as the original pubco could have.
The key difference is timing: rent payments to an administrator are treated as administration expenses, which means they’re paid with higher priority than general debts owed to suppliers or creditors. This actually works in the administrator’s favour, but not in yours.
Rates and Utilities
Business rates, water, electricity, and gas are your responsibility under the tenancy agreement. The local authority and utility companies will pursue you for arrears, not the pubco. They’re secured creditors and won’t write off debt. If the administrator disclaims your tenancy and you vacate, you must formally notify the rates authority or you could remain liable for business rates on an empty property.
What You Must Do Immediately
The first 48 hours after your pubco’s administration is announced are the most critical. Here’s the exact sequence of actions.
1. Contact the Administrator Directly
Don’t rely on emails to the pubco head office. Find the name of the appointed insolvency practitioner (usually a licensed administrator from a major firm like Grant Thornton, Deloitte, or BDO). Call them directly and ask:
- Is my tenancy agreement being continued or disclaimed?
- Who do I send rent payments to during administration?
- What contact should I use for maintenance issues or tie queries?
- When will a decision on my tenancy be made?
Document every conversation. Write a follow-up email summarising what was said. Don’t assume anything verbally discussed is binding.
2. Check if You’re Covered by the Pub Code
Pull out your tenancy agreement and check the signature date. If it’s after 3 April 2015, you’re covered. If you’re uncertain, contact the Pub Code Adjudicator’s office, which can advise on your status for free.
3. Gather Your Financial Records
Collect the last 12 months of:
- Rent payment receipts
- Trade accounts (turnover, profit, losses)
- Utility and rates bills
- Stock lists and valuations
- Evidence of any pubco breaches (failed maintenance, missed support promises)
You’ll need this if you pursue a claim for a new tenancy or compensation under the Pub Code or Business Tenancies Act.
4. Write to the Administrator Formally
Don’t wait. Within the first week, send a letter (by registered mail, not email) stating:
- Your name, the pub name, and the address
- The start date of your tenancy
- That you’re exercising your rights under the Pub Code (if applicable) or the Business Tenancies Act 1954
- That you’re requesting either a new tenancy or compensation
- A request for confirmation of the administrator’s decision in writing
This letter creates a dated record that you acted within the timeframe. Timescales vary, but typically you have 14 days from disclaimer to make this claim. Don’t miss it.
5. Seek Legal Advice
This is not optional. Contact a solicitor who specialises in commercial tenancy or insolvency within the first week. Many will provide a free initial consultation. The cost of a solicitor is far less than losing a pub tenancy or having an uncontested judgment issued against you for arrears.
What Happens After Administration Ends
Administration doesn’t last forever. It typically concludes in one of three ways: the company is sold as a going concern, it’s broken up and assets are sold separately, or it’s wound up. Each outcome affects your tenancy differently.
Sale to Another Pubco
If another pubco buys the company, your tenancy agreement usually transfers to them automatically. You’ll get a notice of transfer and a new contact for rent and queries. Your terms don’t change unless the new owner renegotiates them with you. This is the least disruptive scenario.
Asset Sale
If the property is sold separately from the company, your tenancy may be terminated so the property can be sold with vacant possession. If this happens, you’re entitled to a claim under the Pub Code or Business Tenancies Act—but only if you’ve already served notice requesting one. This is why that formal letter to the administrator matters.
Wind-Up
If the company is wound up without being sold, all assets are realised and creditors are paid in order. Your pub is either sold with you as the existing tenant (which requires a buyer willing to accept your existing lease) or sold with vacant possession. Again, your protection is the Pub Code or Business Tenancies Act claim.
How to Protect Yourself Before It Happens
The best time to understand your rights is before your pubco fails. Here are the concrete steps you can take today.
Know Your Agreement Inside Out
Read your tenancy agreement cover to cover. You’re looking for:
- The exact date you signed it (determines Pub Code coverage)
- Termination clauses and break options
- Who is responsible for repairs, rates, and utilities
- Rent review mechanisms and when they occur
- Any charges, fees, or tie clauses that could affect your position in administration
If you don’t understand something, ask your BDM in writing. Email is proof.
Understand the Pub Code Rights
If you’re covered, you have specific statutory rights. They’re not in your tenancy agreement—they’re in the statutory guidance issued by the Department for Business, Energy and Industrial Strategy. Read it. Your pubco should have given you a copy when you signed; if they didn’t, request it.
Build a Financial Foundation
When administration happens and you’re fighting for a new tenancy or compensation, the administrator will ask one question: what was your turnover, and what did you actually make? If you’ve been keeping sloppy accounts or running an informal till system, you won’t have credible evidence. Use a best pub EPOS systems guide to implement a professional system that logs every transaction. When you pull reports for your accountant or the administrator, they’ll be indisputable.
More importantly, know your actual profit margins. Use a pub profit margin calculator to establish baseline figures now. If you’re claiming loss of business in a Pub Code dispute, you’ll need to prove what you were making.
Maintain the Property and Document It
If your pubco fails while they’ve neglected repairs or maintenance, that’s a breach of contract—and you can claim damages or reductions in compensation. Take photos of any maintenance issues. Keep email evidence of requests to the BDM. If something isn’t fixed, escalate it in writing. This creates a paper trail that protects you if you later need to prove the pubco wasn’t meeting its obligations.
Stay Current on Rent
Never fall behind on rent, even if the pubco is publicly struggling. The moment administration is declared, arrears become a personal debt you owe to the administrator. Keeping payments current minimises your exposure and strengthens your position if you’re negotiating a new tenancy or settlement.
Know Your Pubco’s Financial Health
Subscribe to Companies House notifications for your pubco. If they publish concerning accounts (rising debt, falling revenue, missing filings), that’s a warning sign. It’s not a crystal ball, but it’s better than being blindsided. Large pubcos like Marston’s are relatively stable, but smaller chains can fail quickly.
Frequently Asked Questions
What’s the difference between administration and receivership?
Administration is a formal insolvency process where an appointed administrator tries to sell the company or maximise asset recovery. Receivership is less common and typically only applies to secured creditors (usually lenders). For tied tenants, administration is the more common scenario you’ll face. Both require you to act quickly to protect your tenancy rights.
Do I have to keep paying rent if my pubco goes into administration?
Yes, until your tenancy is formally disclaimed by the administrator. If they’re continuing your agreement, rent is due to them, not the original pubco. The administrator will pursue it aggressively because it’s a priority expense in administration. Stop paying only on legal advice from a solicitor.
Can I be evicted during administration?
The administrator can seek an eviction order if you stop paying rent or breach your tenancy terms, but court procedures slow this down. If your agreement is disclaimed, you have legal rights to apply for a new tenancy or compensation rather than being simply evicted. Act within the required timeframe.
What’s the difference between Pub Code protection and Business Tenancies Act protection?
The Pub Code applies to agreements dated after 3 April 2015 (and covers pubs with fewer than 30 staff). It gives explicit statutory rights to a new tenancy, compensation, or property purchase. The Business Tenancies Act 1954 is older and applies to most commercial tenancies—it gives a right to a new tenancy at renewal, and courts can grant this even if the original agreement is disclaimed during administration. Both require you to act within set timeframes.
What should I do if the administrator doesn’t respond to my letters?
Keep sending copies of your letters, certified mail, until you receive acknowledgement. If deadlines are passing and you haven’t had a response, escalate immediately to a solicitor. Missing a deadline because the administrator didn’t reply is not a valid excuse—courts view it as your responsibility to ensure you’ve done everything needed to preserve your rights.
Understanding your rights when a pubco fails is critical—but most licensees only think about it after it’s too late.
Before you sign a tenancy agreement—or if you’re already running a pub—ensure you have complete financial visibility and know exactly what you’re entitled to.
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